IAG overcomes bad weather and terror to report increase in profits

IAG overcomes bad weather and terror to report increase in profits

International Consolidated Airlines Group has reported a third quarter operating profit of €1,455 million before exceptional items.

The figure is up from the €1,205 million reported last year.

Willie Walsh, IAG chief executive, said: “We’re reporting another strong quarter with an operating profit up 20.7 per cent to €1,455 million before exceptional items.

“All our companies performed well.

“Passenger unit revenue was up 2.2 per cent at constant currency boosted by improvements in the Spanish and Latin American markets.

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“Our commercial performance was good despite underlying disruption from severe weather and terrorism.

“IAG Cargo improved in the quarter due to stronger Asia Pacific demand compared to last year.

“We’re pleased to announce an interim dividend of 12.5 euro cents per share.”

Non-fuel unit costs at IAG before exceptional items for the quarter were down 1.7 per cent, but up 2.5 per cent at constant currency.

At current fuel prices and exchange rates, IAG expects its operating profit for 2017 to be around €3 billion before exceptional items.