British Airways parent returns to profitPosted: February 28, 2014
IAG competed the takeover of BMI in 2012 and also bought the profitable Spanish budget carrier Vueling, which helped improve IAG’s trading.
Pre-tax profit reported by IAG today stood at €227 million excluding ‘exceptional items’, a significant improvement in the €774 million loss the previous year.
Revenue was up3.1% to €18.6bn, despite a near 12% slump in cargo revenue. Passenger revenue grew €16.2bn – almost 6%.
BA made an operating profit of €762m for the 12 months to December 31.
Iberia remained in the red but reduced its losses to €166m. Vueling made a €168m operating profit since being bought by IAG in April.
Walsh said: “In 2013, we strengthened the group by acquiring Vueling, embarking on Iberia’s transformation and enhancing British Airways’ revenue performance. This has led to a strong financial recovery and return to profitability.”
Sourced from Travel Weekly