International Airlines Group is not engaged in any negotiations with potential acquisition targets, despite previously highlighting the potential to add carriers to the entity created through the British Airways-Iberia merger.

Chief executive Willie Walsh says that the group is "very much focused" on adapting capacity this year, given the nature of the external environment.

"We're not active [in acquisitions] at allwe're not having formal or informal discussions with anybody," he said, as IAG disclosed its first financial statement since the tie-up.

"We have structured IAG to participate in future consolidation but we're not actually doing anything at the moment."

Last year British Airways and Iberia drew up a list of around a dozen carriers which they considered potential acquisition targets, after looking at some 40 candidates.

But Walsh says: "If the right opportunity were to present itself, we'd clearly have the capacity to look at those opportunities. But our focus in the short term will be on delivering the synergies that we have identified."

Source: Air Transport Intelligence news