International Airlines Group (IAG) has defied seemingly industry wide gloom by swinging back into the black for the first half of financial 2011.

IAG recorded a pre-tax profit of €39 million for the six months to June 30th, up from a loss of €419 million a year earlier.

Revenues at the second-biggest airline group by value in Europe, behind Lufthansa, were also 17.9 percent higher at €7.8 billion.

Passenger unit revenue at IAG was up 7.5 per cent, on top of volume increases of 10.4 per cent.

The results follow results from rivals Air France-KLM and Lufthansa showing both have been batted by rising fuel prices in recent months.

Fuel costs at IAG were up 34.8 per cent to €2.4 billion.

Willie Walsh, IAG chief executive, said: “This is a good first half performance with a return to operating profitability.

“While last year’s figures for this quarter were affected by disruption, the underlying trends remain positive.”

Our long haul business is stable, with strength in the premium sector, but the short haul European market remains highly competitive.

Events in Japan and North Africa/Middle East are, however, expected to have a negative impact on operating profit for the full year of €90 to €100 million.

International Airlines Group

IAG was created by the merger of British Airways and Iberia in 2010.

“IAG is on target to deliver its year one synergies,” added Walsh.

“We are already making cost savings through joint procurement in areas such as insurance and airport handling.

“We have established a single cargo business and introduced integrated sales and airport teams in several key markets.

“Customers are also directly benefiting through airline website cross-selling, more fare and schedule choice on overlapping long-haul routes and easier access to more destinations via new codeshares.”