AIG Posts Good Numbers in First Half of 2017

International Consolidated Airlines Group has reported second quarter operating profit of €805 million before exceptional items for the six months to June 30th.

Passenger unit revenue at the group - which operates Iberia and British Airways - for the quarter was up 1.5 per cent, or four per cent at constant currency.

Non-fuel unit costs before exceptional items for the quarter were down 0.3 per cent, or up 3.5 per cent at constant currency.

Operating profit before exceptional items for the half year stood at €975 million, compared with €710 million last year, up 37.3 per cent, including the adverse foreign exchange impact for the half year of €44 million. Adjusted net debt to EBITDAR improved by 0.4 to 1.4 times.

Earlier this year IAG launched Level, a new low-cost carrier, as it seeks to gain traction in the rapidly developing cut price transatlantic market.

At current fuel prices and exchange rates, IAG expects its operating profit for 2017 to show a double-digit percentage improvement year-on-year.

The group expects second half passenger unit revenue (passenger revenue per ASK) to show an increase versus last year, at constant currency.