IAG moves into profit
British Airways’ parent IAG has moved into profit in the first six months of the year.
The group, which also owns Iberia and Vueling, reported a half-year operating profit of €230 million, compared with a loss of €33 million in the same period last year.
"This performance shows that we are making further solid progress," said IAG chief executive Willie Walsh.
"Our disciplined approach to capacity continues and we will make reductions where it makes sense as we go through the year."
He said the group’s capacity will be trimmed by around three percentage points for the winter 2014 season.
"All of our airlines had their highest second quarter operating result since 2007,” he added.
BA’s operating profit was €332 million in the quarter, up from €247 million last year, while Iberia made an operating profit of €16 million, compared to an operating loss of €35 million last year.
Vueling’s operating profit was €30 million, up from €27 million.
Walsh said Iberia’s restructuring continues and last week the Spanish airline signed an agreement that could lead to an additional reduction of up to 1,427 jobs.
"This will create new opportunities for Iberia to enhance its profitability further in the next two or three years,” said Walsh.
IAG is converting eight Airbus A350-900 aircraft options into firm orders and securing eight A330-200 aircraft for Iberia.
The aircraft will replace 16 A340 family aircraft in Iberia’s longhaul fleet and will be delivered between 2015 and 2020.
"Iberia has taken significant steps to restructure its business and the progress made so far means that we can bring new longhaul aircraft into the airline’s fleet," said Walsh.
"These orders demonstrate our commitment to make Iberia competitive."
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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