Back to black for BA parent

British Airways’ parent IAG returned to profit last year after shrinking its losses at its Spanish airline Iberia and buying money-making budget airline Vueling.

Chief executive Willie Walsh said the group has also benefited from cost savings at BA and from the additional Heathrow take-off and landing slots acquired through its 2012 takeover of BMI.

Pre-tax profit for the 12 months to December 31 came to €227 million compared with a €774 million loss last year.

BA made an operating profit of €762 million while Iberia remained in the red but reduced its losses to €166 million. Vueling contributed €168 million operating profit from April to December