Brussels terror attacks impacts IAG revenues
British Airways parent IAG has scaled back its planned capacity growth plans in light of the impact of recent terror attacks.
In its interim management statement today, the airline group said revenues in the second quarter had been affected by the aftermath of the Brussels attack, alongside ‘some softness’ in underlying premium demand.
"As a result, IAG has moderated its short term capacity growth plans," it said.
IAG, which also includes Aer Lingus, Vueling, and Iberia, said it expects to generate an operating profit increase similar to last year.
Of the three months to March 31, chief executive Willie Walsh said: "We’re reporting an operating profit of €155 million before exceptional items which is up by €130 million compared to last year. This is a good performance with a strong increase in what is traditionally the weakest quarter. Total revenue was up 7.9% and total cost per ASK decreased by 6.1%.
"January and February’s revenue was in line with Q4 2015 trends. March revenue was affected by the timing of Easter and the Brussels terrorist attacks with the latter continuing into quarter two.
"Our productivity has improved 5.9% and the underlying non-fuel unit costs performance continued to show improvement across our companies."
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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