IAG sees its profit rise on higher ticket prices
Higher ticket prices and lower costs helped Aer Lingus-owner IAG to post a 6pc rise in quarterly profit and keep it on track for full-year growth.
For the second quarter, IAG reported operating profit before exceptional items of €835m, slightly behind a consensus forecast of €848m, as disruption caused by French Air Traffic control strikes weighed.
Unit revenue performance, which measures pricing, rose 2.9pc in the period, helped by strong demand in North America, Europe and Latin America.
Revenue from Aer Lingus passengers was €867m in the six months to 30 June, with Aer Lingus reporting an operating profit of €104m in the six months.
The improvement in the Aer Lingus performance was driven by strong passenger growth, according to the group’s half year report.
Commenting on the results, Aer Lingus CEO, Stephen Kavanagh, said that the airline has an ambitious flight path – to be the leading value carrier across the North Atlantic.
"This vision is enabled by a profitable, sustainable short-haul network; and is supported by a guest-focused brand and digitally-enabled value proposition."
"Todays’ results are the latest manifestation of the airline’s successful business model. A business model that has delivered accelerated growth, boosted traffic, created new Irish job opportunities and driven Irish tourism growth particularly from North America over the past number of years," Mr Kavanagh said.
IAG, which also owns the Iberia, Vueling, British Airways and Level airlines, reiterated its outlook that it expected annual operating profit to be higher this year at current fuel prices and exchange rates.
The company had cash of €8.1bn at June 30, up €202m on June 30, 2017.
(Additional reporting from Reuters)