Strong results for IAG and AF-KLM

BA-owner IAG forecasts double-digit rise in full-year operating profit
Both IAG and Air France-KLM have posted strong results for their second quarters, boosting expectations of healthy full-year results.
Despite a massive power outage in May that pushed up non-fuel unit costs, IAG, owner of Iberia, British Airways, Aer Lingus, Vueling and other subsidiaries, reported a 37.3% rise in operating profit for the six months to June 30, to €975 million.
Passenger unit revenue rose 1.5% year-on-year in the second quarter – its first since 2014. It now expects operating profit for 2017 to show a double-digit percentage improvement.
Air France-KLM is also more optimistic, despite a poor first quarter, after its second-quarter profits beat forecasts. There, unit revenues were also up by 1.5% in the second quarter.
Air France-KLM’s second-quarter operating profit was €496 million. H1 operating profit was €353 million, up by €135 million. It said that “robust traffic” was resulting in an improved load factor.
Its results came a day after it announced a new transatlantic joint venture with Delta and Virgin Atlantic, as well as deals for Delta and China Eastern to enter its share capital. The Trust Together strategic project has brought a five-year labour agreement for cabin crew and a pilot agreement paving the way for the creation of Joon.