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.” 


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