International Airlines Group Returns to Black as Iberia Struggles

International Airlines Group has reported second quarter operating profit €380 million, some €135 million better than last year. Revenue for the quarter at the group – which operates British Airways, Iberia and Vueling – was up 6.7 per cent to €5,086 million.

IAG chief executive Willie Walsh said: “In the quarter, we made an operating profit of €380 million which is up from €245 million last year. 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.”

Fuel unit costs for the quarter were down 9.3 per cent, or 5.4 per cent at constant currency, boosting the bottom line. Iberia, however, continued to prove troublesome, making an operating loss of €95 million. Last week the carrier signed an agreement to shed an extra 1,427 jobs, IAG chief executive Willie Walsh said.