International Airlines Group (IAG), parent company of Iberia and British Airways, reported second-quarter net income of €280 million ($375 million), more than doubled from a €127 million profit in the year-ago period, marking the best second quarter results for all of the IAG carriers since 2007.
“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,” IAG CEO Willie Walsh said.
For the three months ended June 30, revenue rose 6.7% to $5.1 billion while expenses rose 4% to €4.7 billion, producing an operating profit of €380 million, up 55.7% from a €244 million operating profit in the prior-year quarter.
Traffic rose 10% to 52.1 billion RPKs on a 10.8% increase in capacity to 64.6 billion ASKs, producing a load factor of 80.7%, up 0.6 point.
Yield dipped 1.1% to 8.66 cents as RASK lowered 1.8% to 6.99 cents and CASK decreased 6.1% to 7.29 cents. CASK ex-fuel was 4.95 cents, down 4.4%.
British Airways’ operating profit was €332 million, up from €247 million last year, while Iberia made an operating profit of €16 million, compared with an operating loss of €35 million last year. Vueling’s operating profit was €30 million, up from €27 million last year.
“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 long-haul fleet as replacement aircraft,” said Walsh.
In the half year, IAG made a €230 million operating profit, reversing last year’s €33 million operating loss. Revenue was up 6.7%, with non-fuel costs up 4.9%.
“At current fuel prices and foreign exchange rates, we expect to improve operating profit for the 2014 full year by at least €500 million, from a 2013 base of €770 million. Passenger unit revenues should remain relatively flat, with margin expansion driven by a reduction in unit costs,” Walsh said.
“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,” IAG CEO Willie Walsh said.
For the three months ended June 30, revenue rose 6.7% to $5.1 billion while expenses rose 4% to €4.7 billion, producing an operating profit of €380 million, up 55.7% from a €244 million operating profit in the prior-year quarter.
Traffic rose 10% to 52.1 billion RPKs on a 10.8% increase in capacity to 64.6 billion ASKs, producing a load factor of 80.7%, up 0.6 point.
Yield dipped 1.1% to 8.66 cents as RASK lowered 1.8% to 6.99 cents and CASK decreased 6.1% to 7.29 cents. CASK ex-fuel was 4.95 cents, down 4.4%.
British Airways’ operating profit was €332 million, up from €247 million last year, while Iberia made an operating profit of €16 million, compared with an operating loss of €35 million last year. Vueling’s operating profit was €30 million, up from €27 million last year.
“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 long-haul fleet as replacement aircraft,” said Walsh.
In the half year, IAG made a €230 million operating profit, reversing last year’s €33 million operating loss. Revenue was up 6.7%, with non-fuel costs up 4.9%.
“At current fuel prices and foreign exchange rates, we expect to improve operating profit for the 2014 full year by at least €500 million, from a 2013 base of €770 million. Passenger unit revenues should remain relatively flat, with margin expansion driven by a reduction in unit costs,” Walsh said.
