International Airlines Group has reported second quarter operating profit €380 million, some €135 million better than last year.
Revenue for the quarter at the group – which operates British Airways, Iberia and Veuling – was up 6.7 per cent to €5,086 million.
IAG chief executive Willie Walsh said: “In the quarter, we made an operating profit of €380 million which is up from €245 million last year.
“This performance shows that we are making further solid progress.
“Our disciplined approach to capacity continues and we will make reductions where it makes sense as we go through the year.
“We are, therefore, trimming planned IAG capacity by around three percentage points for the winter 2014 season.”
Fuel unit costs for the quarter were down 9.3 per cent, or 5.4 per cent at constant currency, boosting the bottom line.
Iberia, however, continued to prove troublesome, making an operating loss of €95 million.
Last week the carrier signed an agreement to shed an extra 1,427 jobs, IAG chief executive Willie Walsh said.
(IAG also said today it is converting eight Airbus A350-900 aircraft options into firm orders and securing eight A330-200 aircraft for Iberia.
These aircraft will replace 16 A340 family aircraft in Iberia’s long-haul fleet and will be delivered between 2015 and 2020.
Walsh said: “Iberia has taken significant steps to restructure its business and the progress made so far means that we can bring new long-haul aircraft into the airline’s fleet.
“These orders demonstrate our commitment to make Iberia competitive.
“Both aircraft will provide cost efficiencies and environmental benefits, enabling Iberia to replace its long haul fleet with modern and fuel efficient aircraft.”
IAG secured commercial terms for the A350 aircraft as part of the group long-haul order announced in April 2013.
The eight A330 aircraft will be obtained either by converting existing options from the 2011 Airbus order or from the operating lease market, depending on financial and delivery terms.