IAG announce significant increase in profits for first half of 2014

Business | Fri 1 Aug | Author – Business & Finance
Willie Walsh
Pictured: Willie Walsh, CEO, IAG

International Consolidated Airlines Group (IAG) today announced the Group’s financial results for the six months to June 30th with operating profit up €263m from the same period last year.

Financial highlights include:

  • Second quarter operating profit €380m (2013: operating profit of €245m before exceptional items
  • At constant currency, second quarter passenger unit revenue down 0.4%
  • Non-fuel unit costs down 4.4%
  • Revenue for the quarter up 6.7% to €5,086m
  • Operating profit for the half year €230m (2013: operating loss €33 million before exceptional items)

Willie Walsh, IAG CEO, said: “In the quarter, we made an operating profit of €380mwhich is up from €245m last year.

“This performance shows that we are making further solid progress. Our disciplined approach to capacity continues and we will make reductions where it makes sense as we go through the year. We are, therefore, trimming planned IAG capacity by around three percentage points for the winter 2014 season.

“All of our airlines had their highest second quarter operating result since 2007. British Airways’ operating profit was €332m in the quarter, up from €247m last year while Iberia made an operating profit of €16m, compared to an operating loss of €35m last year. Vueling’s operating profit was €30m €27m last year.”

Walsh added: “Iberia’s restructuring continues to have a positive impact and last week Iberia signed an agreement that could lead to an additional reduction of up to 1,427 jobs. This will create new opportunities for Iberia to enhance its profitability further in the next two or three years. Based on the progress made at Iberia, we’re pleased to announce today that eight Airbus A350-900s and eight Airbus A330-200s will be joining its longhaul fleet as replacement aircraft.”

For more, you can find a video of Willie Walsh discussing these results at length here.