International Airlines Group has reported a first quarter operating profit of €280 million, before exceptional items.

The figure is a sharp increase on last year, when the group reported profits of €160 million.

Changes in exchange rates generated €58 million of the increase for the three months ended March 31st.

IAG – which owns British Airways, Iberia, and Aer Lingus – said passenger unit revenue for the quarter was down 0.7 per cent, but up 3.5 per cent at constant currency.

IAG chief executive Willie Walsh said: “Our positive passenger unit revenue trend continued with an increase of 3.5 per cent at constant currency.

“This trend benefitted partially from the timing of Easter.

“Non-fuel unit costs before exceptional items were down 0.9 per cent at constant currency.

“Despite higher market prices, our fuel unit costs have gone up by just 0.6 per cent in euros.”

British Airways also this quarter put in place a new flexible defined contribution pension scheme.

It replaces the existing New Airways Pension Scheme and British Airways Retirement Plan.