logo-loader
viewInternational Consolidated Airlines Group

British Airways owner IAG rallies after quarterly profits beat market forecasts

"Despite fuel cost headwinds, we delivered a good performance,” said chief executive Willie Walsh.

British Airways
British Airways lost an appeal to halt a planned pilot strike on Wednesday

British Airways owner International Consolidated Airlines Group PLC (LON:IAG) shares took flight as it reported a better-than-expected rise in profit for the second quarter.

Operating profit rose to €960mln in the three months to June 30 from €816mln last year, beating analysts’ forecasts of €914mln.

Total revenue increased to €6.7bn from €6.2bn last year. Passenger unit revenue for the quarter grew 3.1% or 1.1% at constant currency, boosted by the later timing of Easter this year.

Passenger numbers rose to 55.9mln from 52.7mln last year. The load factor – the number of passengers against the number of seats available – grew 0.6 points to 83.0%.

Fuel unit costs gained 12.4% or 6.3% at constant currency.

"Despite fuel cost headwinds, we delivered a good performance,” said chief executive Willie Walsh.

The interim results come two days after British Airways lost an appeal aimed at stopping a planned strike by pilots.

The British Airline Pilots' Association (Balpa) backed industrial action on 22 July after three days of negotiations failed to resolve the dispute.

IAG launched an appeal after it lost an injunction to halt the strike in the High Court. The Court of Appeal rejected the appeal on Wednesday.

Shares advanced 3.6% to 428p in morning trading. 

Quick facts: International Consolidated Airlines Group

Price: 633.8 GBX

LSE:IAG
Market: LSE
Market Cap: £125.84 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Alkane Resources hits almost 700 metres of mineralisation in...

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner updates Proactive on follow-up drill results from the Boda prospect within the wider Northern Molong Porphyry Project (NMPP) near Orange in New South Wales. The drilling is part of a 5,000-metre diamond core drilling exploration...

5 hours, 31 minutes ago

2 min read