31st Jul 2015 06:22
LONDON (Alliance News) - International Consolidated Airlines Group on Friday maintained its targets for the current financial year as its operating profit surged in the first half.
The FTSE 100-listed airline, which owns British Airways and Iberia and which is in the process of acquiring Irish flag carrier Aer Lingus Group PLC, said its operating profit excluding exceptional items in the first half to the end of June was up to EUR555 million, sharply higher than the EUR230 million it posted a year earlier.
Total revenue for IAG rose to EUR10.36 billion from EUR9.29 billion, as its passenger revenue in the half increased to EUR9.12 billion from EUR8.18 billion. At constant currencies, however, revenue was down by 2%, as the reported figure was flattered by the weak euro.
The carrier said its available seat kilometres traffic measure increased 5.3% in the half, while its load factor improved to 79.3% from 78.9%.
IAG said its expectations for the year remain unchanged, and it is still targeting an operating profit for the year in excess of EUR2.2 billion.
"We said previously that profit improvement would be slower in the second quarter and we are on track to reach our full year targets. We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels," said Willie Walsh, IAG's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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