IAG profits rise despite weather and terrorism disruption

Tuesday, 27 Oct, 2017 0

British Airways parent IAG has reported a 20% rise in operating profits in the third quarter, despite disruption from severe weather and terrorism.

Thanks to significantly lower fuel costs, it achieved operating profit of nearly €1.5 billion for the three months to September 30.

Total revenues for the quarter were up 2% to €6.6 billion, roughly in line with analyst forecasts.

The group, which also owns Iberia, Aer Lingus, Vueling and LEVEL, said at current fuel prices and exchange rates, it expects operating profit for 2017 to be around €3 billion before exceptional items.

Chief executive Willie Walsh said: "All our companies performed well. Passenger unit revenue was up 2.2% at constant currency boosted by improvements in the Spanish and Latin American markets. Our commercial performance was good despite underlying disruption from severe weather and terrorism.’

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.