Overcast

Overcast

max temp: 15°C

min temp: 11°C

ESTD 1874 Search

The pigs are coming. Find out more about

Pigs Gone Wild

here.

UK: British Airways’ Spanish owner IAG hails ‘solid progress’

08:57 01 August 2014

Willie Walsh, Chief Executive of British Airways.

Willie Walsh, Chief Executive of British Airways.

British Airways owner International Airlines Group (IAG) said its carriers had beaten a stay-at-home World Cup effect to enjoy their best quarter since the financial crisis.

But the Spanish company, which was formed in January 2011 and is the parent company of British Airways, Iberia and Vueling, also said it was cutting capacity this winter to maintain a “disciplined approach” amid signs of turbulence in the aviation sector. Shares climbed 3%.

BA’s operating profit rose 34% to 332 million euros (£263 million) in the second quarter while Iberia’s earnings improved to 16 million euros (£13 million) after a 35 million euros (£28 million) loss the year before.

The growth came despite a World Cup effect that had created a slight decrease in demand as football fans opted to stay at home to watch the tournament.

IAG, which also operates Spanish low-cost carrier Vueling, said its half-year operating profits rose to 230 million euros (£182 million) from a 33 million euro (£26 million) loss in the same period last year.

But the group also said a key measure of how full its aeroplanes are had weakened as it announced that it would shave 3% off planned capacity this winter.

The reduction will mean that, in the fourth quarter, growth is being trimmed from 8.7% to 5.8% due to market conditions. It comes in the wake of profit warnings from rivals Lufthansa and Air France-KLM.

Chief executive Willie Walsh said IAG was making “further solid progress”.

He added: “Our disciplined approach to capacity continues and we will make reductions where it makes sense as we go through the year.

“We are, therefore, trimming planned IAG capacity by around three percentage points for the winter 2014 season.

“All of our airlines had their highest second quarter operating result since 2007.”

Mr Walsh said continued restructuring at Spain’s Iberia was having a positive impact. Last week it signed an agreement that could see a further 1,427 job cuts, which he said could help enhance profitability over the next two to three years.

He said that Iberia was adding 16 new Airbus aircraft to its long-haul fleet.

IAG made a second-quarter profit of 380 million euros (£301 million), 55% ahead of last year. The first quarter of this year saw a loss of 150 million euros (£119 million), though this was narrower than the year before.

The group said it expects to improve full-year operating profit by at least 500 million euros (£397 million) from the 770 million euros (£611 million) result last year.

IAG said passenger revenue for the half-year increased 9.1% to £8.18 billion while capacity grew by 11.3%. But its aeroplanes were less full, with “seat factor” down by 0.6% to 78.9%.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Spending on Eating Out remained robust during April, according to a survey carried out for Greene King.

Britons continued to enjoy eating out during April, according to a new survey, despite reports of growing concern over the strength of the UK economy and the potential impact of a vote to leave the EU in next month’s referendum.

Meeting organised by the Institute of Directors about Suffolks burgeoning film industry. Julien Mery, co-founder of Livid Films and director of Film Suffolk, discussed how the creative community in Suffolk is putting the county on the UK and worlds creative industry map. L-R Sarah Brown, Graham Kill, Julien Mery and Old Jet's Jesse Quin.

A group of executives got to see the creative side of Suffolk’s economy at one of the county’s most popular filmmaking locations.

Oliver Paul, owner of the Suffolk Food Hall, DEFRA Secretary Liz Truss, South Suffolk MP James Cartlidge and Babergh District Councillor Jennie Jenkins meet for an informal meeting on the outcome of the RDPE funding provided for the commercial artisan kitchens in the Cookhouse at the Suffolk Food Hall.

Apprenticeship Levy funding from major supermarket chains and food manufacturers could deliver a boost to skills training for smaller food businesses and farming, a senior Government minister has said during a visit to Suffolk.

The Inspirations shop in Wickham Market,owned by shareholders in the community, is now officially open. Nick Denny from the Co-op cut the ribbon.

The much anticipated transformation of a Suffolk village’s former supermarket into a new community retail venture was celebrated this week - four years after the site was last in use.

New-build utility connections specialist Brookfield Utilities has reported increased annual profits.
Photo: Rui Vieira/PA Wire

Annual profits at Suffolk-based Brookfield Utilities have increased by more than one-third as it continues to add to the number of properties it connects.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View
HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24