7th Oct 2019 12:43
(Alliance News) - International Consolidated Airlines Group SA on Monday said traffic rose year-on-year in September but warned on full-year capacity growth after British Airways was hurt by industrial action.
Traffic, measured in revenue passenger kilometres, rose 0.8% to 24.64 billion from 24.44 billion in September 2018, with group capacity, measured in available seat kilometres, broadly flat at 28.90 billion.
Passengers carried rose by 0.6% to 10.64 million from 10.58 million, though in British Airways alone this fell by 8.1% year-on-year to 3.9 million passengers from 4.2 million.
The UK flag carrier has been mired in pilot strikes in recent months, and in September planned industrial action led to 2,325 flight cancellations.
British Airways was the only airline in the FTSE 100 firm's portfolio to post a year-on-year decline in passengers carried. At Spanish carriers Iberia and Vueling, there was passenger growth of 7.1% and 7.5% respectively.
Austrian airline Level had passenger growth of 9.2% in September, with Irish flyer Aer Lingus having broadly unchanged passenger numbers.
IAG's load factor for September rose by 0.7 percentage points to 85.3% from 84.6%.
Warning on its capacity growth, IAG said: "Capacity growth for 2019 has also been updated. In the third quarter, capacity grew by 2.8%, compared with 5.2% planned previously. For the fourth quarter it is now expected to be about 2.0%, which is 1.2 points below previous guidance. Full year capacity growth is expected to be about 4%, compared with 5% previously."
IAG reiterated that industrial action and other recent disruption has cost the company EUR170 million.
The company affirmed that at current fuel prices and currency exchange rates, it expects 2019 operating profit before exceptional items to be EUR3.27 billion, 6.6% lower than the EUR3.49 billion pro-forma figure achieved in 2018. Previously, it had guided for profit in 2019 to be flat on the year before.
Shares in IAG were 1.7% higher at 462.40 pence each in London on Monday afternoon.
By Eric Cunha; [email protected]
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