2nd Aug 2019 09:00
(Alliance News) - British Airways parent International Consolidated Airlines Group SA on Friday said higher passenger revenue offset rising fuel costs and resulted in an increased profit for the first half of 2019.
Shares in IAG were trading 1.8% higher at 420.90 pence each in London.
For the six months to June 30, the company recorded pretax profit of EUR921 million, up 20% from EUR770 million, on revenue of EUR6.77 billion and EUR6.18 billion, respectively.
First half passenger revenue was EUR6.00 billion versus EUR5.52 billion, while fuel, oil costs and emissions charges increased to EUR1.57 billion from EUR1.33 billion.
Operating profit before exceptional items - the company's preferred profit measure - slipped 2.7% year-on-year to EUR1.09 billion from EUR1.12 billion in the interim period.
"Despite fuel cost headwinds, we delivered a good performance. At constant currency, fuel unit costs were up 6.3% while passenger unit revenue increased 1.1%, benefiting from the timing of Easter," said IAG Chief Executive Willie Walsh.
IAG's capacity, measured in available seat kilometres, rose 5.7% in the first half to 163,431, with increases across all regions. Passenger revenue per available seat kilometre stood at 6.52 cents, up from 6.43 cents.
Passenger unit revenue - passenger revenue per available seat kilometre - for 2019 is predicted to be flat at constant currency, after improving in the second half of the year.
The UK listed company, which also owns Spanish and Irish flag carriers Iberia and Aer Lingus, expects 2019 operating profit before exceptional items to be in line with the 2018 pro forma figure, at current fuel prices and exchange rates.
In 2018, the company recorded operating profit before exceptional items of EUR3.23 billion.
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