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Pin to quick picksInternational Airlines Share News (IAG)

Share Price Information for International Airlines (IAG)

London Stock Exchange
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Share Price: 170.35
Bid: 170.30
Ask: 170.40
Change: 6.05 (3.68%)
Spread: 0.10 (0.059%)
Open: 165.25
High: 170.45
Low: 164.35
Prev. Close: 164.30
IAG Live PriceLast checked at -

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Portugal's TAP expects slower but sound 2024 revenue growth, CEO says

Tue, 12th Dec 2023 17:16

LISBON, Dec 12 (Reuters) - Portugal's flag carrier TAP expects to deliver strong results again in 2024, though with more moderate revenue growth, which should maintain its attractiveness to potential buyers, CEO Luis Rodrigues said on Tuesday.

The state-owned airline that Portugal plans to privatise soon saw a record profit of 203.5 million euros ($219.52 million) for the first nine months of this year, reversing a year-ago loss of 90.8 million euros.

While its revenue in the period soared by almost 30% to 3.2 billion euros, surpassing pre-pandemic 2019 levels, Rodrigues said TAP "has to get used to moderate revenue growth of 3% to 4% per year" and not levels seen amid the post-pandemic recovery.

"We are aiming for a 2024 budget that is a little more aggressive than that" for revenues, he said, without offering specifics.

"We expect to deliver good results again (in 2024)," he told reporters, adding that "it is premature at this point" to say whether they will be a record again.

Experts have said TAP's privatisation is at risk of being delayed in the wake of the recent collapse of the country's Socialist government and with a snap election set for March 10.

Rodrigues said a new government will have to decide on the matter, warning that "although it is possible for the privatisation to happen in 2024, it will not be easy" due to the Portuguese election and a second election for the European Parliament.

The government approved the sale of at least 51% of TAP in September and its privatisation has already attracted interest from Lufthansa, Air France-KLM and British Airways owner IAG.

"Informally, all three have said that they understand the current political conditions perfectly and that they will be waiting" for a decision to resume the privatisation, Rodrigues said. ($1 = 0.9270 euros) (Reporting by Sérgio Gonçalves; editing by Andrei Khalip and Paul Simao)

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