IAG reports surge in profits for second quarter

IAG reports surge in profits for second quarter

International Airlines Group has reported second quarter operating profit of €530 million, up from a figure of €380 million for the same period last year.

At the same time, revenue for the quarter at IAG – which operates Iberia and British Airways – was up 11.2 per cent to €5,656 million.

Passenger unit revenue for the quarter increased five per cent, but was down 6.6 per cent at constant currency levels.

Willie Walsh, IAG chief executive officer, said: “We made an operating profit of €530 million in the quarter, up from a €380 million operating profit last year. 

“At constant currency, revenue was down 1.2 per cent with passenger unit revenue down 6.6 per cent. 

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“We said previously that profit improvement would be slower in the second quarter and we are on track to reach our full year targets. 

“We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels. 

“In the half year, we made an operating profit of €555 million which is up from a €230 million operating profit last year.”

Fuel unit costs for the quarter were down 12 per cent at constant currency level.

At current fuel prices and exchange rates IAG said the outlook remains unchanged.

IAG expects in 2015 to generate an operating profit in excess of €2.2 billion.