British Airways owner International Consolidated Airlines enjoyed a very important milestone by unveiling its first operating profit since the pandemic.
The company is benefiting in two ways. Easing oil prices have helped with fuel costs while passenger demand has been robust.
AJ Bell investment director Russ Mould said: “Crucially, and despite the pressures on household budgets, jetting away continues to be prioritised when it comes to spending decisions and bookings are healthy.
“Debt remains very elevated – a consequence of Covid – and the return of the dividend next year, which is roughly what has been guided, would be true evidence CEO Luis Gallego has successfully piloted a flight path to recovery.
“There is one fly in the ointment. The rebound in business travel, an important area for the group, remains sluggish and three years on from the start of the pandemic there may be fears this is becoming a structural issue with companies no longer as willing to fund these kinds of trips as regularly.”