International Airlines Group overcomes rising fuel prices to report strong profits

International Airlines Group overcomes rising fuel prices to report strong profits

International Airlines Group has reported operating profit of €1,460 million before exceptional items for the nine months to September 30th, up from €1,450 million last year.

The company – which owns British Airways, Iberia, Aer Lingus and other European carriers – said it would issue an interim dividend of 14.5 cents per share.

Passenger unit revenue for the period was up 1.3 per cent, or up 2.4 per cent at constant currency rates.

Willie Walsh, IAG chief executive, said: ““These were strong results despite significant fuel cost and foreign exchange headwinds.

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“At constant currency, our passenger unit revenue increased by 2.4 per cent while non-fuel unit costs went down 0.7 per cent.”

At current fuel prices and exchange rates, IAG expects its operating profit before exceptional items for 2018 to show an increase of around €200m from a base of €2,950 million in 2017.
Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currency for the full year.