British Airways, Iberia and Vueling parent International Airlines Group almost halved first quarter losses in the three months to March.
The airline group’s operating loss for the three months came in at €150 million against €278 million in the same period last year. Quarterly revenue was up by 6.7% to €4.2 billion.
IAG today forecast an improved operating profit for the full year by at least €500 million, from a 2013 level of €770 million.
Revenues should remain relatively flat, with margin expansion driven by a reduction in unit costs, IAG said.
Chief executive Willie Walsh said: “We’re pleased that our quarterly operating loss has reduced significantly from €278 million last year to €150 million, especially as Vueling’s quarterly losses were not included last year as they weren’t in the group.
“Iberia has almost halved its losses from quarter one last year with an operating loss of €111 million compared to €202 million.
“The airline continues to benefit from restructuring and these figures don’t reflect the impact of recent pay and productivity agreements which took effect in April.
“While the restructuring remains work in progress, Iberia is gradually resuming some routes including long-haul services to Santo Domingo and Montevideo.
“British Airways made an operating loss of €5 million in the quarter, compared to a €72 million operating loss in 2013.
“The airline has increased capacity within a controlled cost environment and benefited from the efficiency of its new Airbus A380 and Boeing 787 aircraft.
“Vueling made an operating loss of €30 million and has managed to keep its losses flat while growing capacity. The airline continues to grow with its main focus in southern Europe.”
Group premium traffic in April increased by 4% compared to the same month last year, IAG reported.
Sourced from Travel Weekly