Friday 19 January 2018

British Airways owner IAG books rising profit

International Airlines Group said operating profit before exceptional items rose 20.7% in the third quarter.

British Airways planes
British Airways planes

By By Ravender Sembhy, Press Association City Editor

British Airways owner IAG has posted rising third quarter profits as the group overcame extreme weather and terrorism which has impacted the sector.

International Airlines Group (IAG) said operating profit before exceptional items rose 20.7% to 1.45 billion euro (£1.28 billion) in the three months to September 30.

Revenue rose 2% to 6.6 billion euro as boss Willie Walsh hailed a “strong quarter”.

He added: “All our companies performed well.

“Passenger unit revenue was up 2.2% at constant currency boosted by improvements in the Spanish and Latin American markets.

“Our commercial performance was good despite underlying disruption from severe weather and terrorism.”

Pre-tax profit rose 22.5% to 1.43 billion euro as the group was also helped by an 8.4% fall in fuel costs.

However, IAG confirmed a 65 million euro hit as it paid out compensation for a power failure that led to severe disruption at British Airways over the May bank holiday weekend.

The major IT failure caused travel chaos for tens of thousands of passengers and the compensation payouts are linked to fees and baggage claims.

IAG also booked a 271 million euro exceptional charge linked to restructuring costs.

This included 180 million euro in relation to transforming Iberia’s in a 91 million euro charge for restructuring British Airways.

Press Association

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