News

BA owner IAG moves into profit

1 Aug 2014 by GrahamSmith

British Airways owner IAG has moved into profit after its Spanish airline Iberia made money after years of losses.

The group’s operating pre-tax profit rose to €155 million (£123 million) in the first half of 2014, compared with a €177 million (£140 million) loss in the first six months of 2013.

Iberia recorded an operating profit of €16 million (£12.7 million), compared to a €35 million (£28 million) loss last year.

IAG CEO Willie Walsh said: “This performance shows that we are making further solid progress. Our disciplined approach to capacity continues and we will make reductions where it makes sense as we go through the year.

“We are, therefore, trimming planned IAG capacity by around three percentage points for the winter 2014 season.

“All of our airlines had their highest second quarter operating result since 2007.

“British Airways’ operating profit was €332 million in the quarter, up from €247 million last year while Iberia made an operating profit of €16 million, compared to an operating loss of €35 million last year. Vueling’s operating profit was €30 million, up from €27 million last year.”

Passenger numbers rose to 35,480,000 in the first half of this year compared to 29,137,000 in same period last year.

IAG earlier this month confirmed an order for 20 single-aisled A320 aircraft for BA’s short-haul fleet (see news, July 14).

iairgroup.com

Graham Smith

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