IAG reports profit fall of 62.6% in first quarter of 2019

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International Consolidated Airlines Group (IAG) has reported that in the first quarter (Q1) of 2019 profit after tax before exceptional items was €70 million down 62.6 per cent on the €187 million in Q1 2018.

IAG also said operating profit was €135 million before exceptional items – down on the €340 million in Q1 2018. Revenue rose to €5.3 billion in Q1 from €5 billion in Q1 last year.

IAG chief executive officer, Willie Walsh (pictured above) said: “In a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of €135 million.

“At constant currency, non-fuel unit costs were down 0.6 per cent while passenger unit revenue decreased by 1.4 per cent.”

IAG said in Q1 passenger unit revenue for the quarter was down 0.8 per cent, and down 1.4 per cent at constant currency. Fuel unit costs for the quarter up 15.8 per cent, and up 11.1 per cent at constant currency.

Capacity across British Airways, Aer Lingus, Iberia, Vueling and Level increased by six per cent in Q1 to 75 million available seat kilometres (ASK).