British Airways owner enjoys record first quarter
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International Airlines Group (IAG) said operating profit rose 9.7 per cent to €170 million (£144m) in the three months to the end of March, traditionally the weakest quarter of the year for airlines.
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Hide AdChief executive Willie Walsh said: “This is a record performance in the first quarter, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing.”
However, revenues fell 2.8 per cent to €4.9 billion, and the firm was forced to stomach a €32m hit from the collapse in the value of the Brexit-battered pound.
IAG issued a profit warning after the EU referendum on 23 June, and in October warned that ticket prices may have to rise as a result of sterling’s slump.
In March the group, which also owns the Aer Lingus and Iberia airlines, launched Level, a new long-haul low-cost airline brand. Walsh said that Level was proving a success with “sales running well ahead of expectations”.
IAG added that it expects operating profit for 2017 to show an improvement year-on-year.