IAG is alone in not lowering its profit targets this year
International Airlines Group’s results for the second quarter and its profit targets set it apart from Lufthansa and Air France-KLM, CAPA writes. They reveal another strong improvement, giving IAG’s H1 the first positive operating result since 2011, outperforming its major European rivals.
As unit revenues were under pressure, the improvement was achieved by unit cost reductions. All three of the group’s airlines – British Airways, Iberia and Vueling – improved their Q2 operating profit. BA and Iberia also posted higher margins.
As a consequence, IAG says that 16 new wide-body aircraft will enter Iberia’s fleet between 2015 and 2020 to replace older A340s.
IAG is the only one of the Big Three not to lower its targets this year, CAPA says. And the momentum is still with IAG.
IAG reported a 55% rise in second-quarter operating profits before exceptional items, to €380 million, from €245 million the previous year. BA’s operating profit rose 34% to €332 million in the quarter, with Iberia making an operating profit of €16 million, up from a loss of €35 million last year. Vueling’s operating profit rose 11% to €30 million.
CAPA / Reuters
[photo courtesy oneworld]