Published On: Fri, Jul 28th, 2017

Cheaper fuel helps IAG profits soar despite hit from BA IT failure compensation

International Airlines Group (IAG) said operating profit before exceptional items rose 37% to €975 million (£871 million) in the six months to June 30 as it was helped by lower fuel costs and a strong Easter. 

Revenue edged up 0.9% to €10.9 billion (£9.7 billion). 

IAG also said it doled out €65 million (£58 million) in additional compensation fees and baggage claims related to the over the spring bank holiday weekend. 

Boss Willie Walsh said: “We’re reporting a very strong performance in quarter two. 

“The underlying trend in unit revenue improved, benefiting partially from Easter and a weak base last year.” 

The firm also was forced to stomach €44 million (£39.3 million) hit from the collapse in the value of the -hit pound. 

IAG issued a profit warning after the referendum on June 23, and in October warned that ticket prices may have to rise as a result of sterling’s slump. 

In March, the group, which also owns the Aer Lingus and Iberia airlines, launched Level, a new long-haul, low-cost airline brand. 

Mr Walsh said Level was proving a success and the group plans to expand the operation. 

“In June, Level started long-haul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation.” 

Celebrity Funny Gaming
Health Food-Recipes Books
Sports Lifestyle Music
Movies Business World
Fashion Top Stories Travel
Technology Education

buzzfix TODAY


Most Popular Posts