IAG reports 20% pre-tax profit rise for the second quarter

posted on 5th August 2019 by Justin Burns
IAG reports 20% pre-tax profit rise for the second quarter

The International Consolidated Airlines Group (IAG) has reported that it is yet to feel any Brexit effect as it reported a 20 per cent rise in pre-tax second quarter profit.

The parent of British Airways, Iberia, Vueling, Aer Lingus and Level, achieved a pre-tax profit of €921m in the three months to June 30 against €770m for the same period last year, on the back of revenue rising 9.5 per cent to €6.7 billion.

Passenger revenues were up nine per cent to €6 billion in the second quarter. IAG’s airlines flew 31.5 million passengers, 5.8 per cent more than the second quarter last year. The load factor across its network was 85 per cent, one percentage point up on the same quarter in 2018.

Chief executive Willie Walsh said: “In Q2 we’re reporting an operating profit of €960 million before exceptional items, up from €900 million last year.

“Despite fuel cost headwinds, we delivered a good performance. At constant currency, fuel unit costs were up 6.3 per cent while passenger unit revenue increased 1.1 per cent, benefitting from the timing of Easter.

“This highlights, once again, that our unique structure and diverse brand portfolio underpins our financial resilience and ability to deliver robust results.”

However, IAG does face new headwinds as BA’s pilots are set to go on strike this month. During the second quarter it was also fined £183 million by the UK Information Commissioner’s Office over a data breach.