Aer Lingus helps boost IAG profit
Aer Lingus has contributed an operating profit of €45 million since it joined IAG on August 18.
Releasing its third quarter results today, IAG CEO Willie Walsh said the Irish airline is a ‘great asset for the group’.
"While the airline’s profitability is seasonal, Aer Lingus is cost-effective and provides a natural gateway to build our business between Europe and North America," he said.
He said the quarter saw a positive contribution from all of its airlines, which also include British Airways, Vueling and Iberia.
IAG made an operating profit before exceptional items of €1,250 million, up from €900 million last year.
"Our passenger unit revenue showed a better trend than in the second quarter of the year and our cost performance remained strong," said Walsh.
He also announced IAG’s first dividend payment of 10 euro cents per share.
For the full year the group expects to pay out 25% of its underlying profit after tax in dividends.
It plans to announce a proposal for a final dividend for 2015 when the full year results are published.
Looking ahead, IAG said at current fuel prices and exchange rates it expects to generate an operating profit between €2.25 billion and €2.3 billion for the full year, excluding Aer Lingus.
This is higher than its previous forecast of €2.2 billion.
Revenue for the quarter was up 15.2% to €6,756 million.
Passenger unit revenue was up 6.5%, excluding Aer Lingus and at constant currency down 3.3%.
Fuel unit costs for the quarter were down 8.6%, down 19.7% at constant currency
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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