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  • IAG ups second-quarter profit despite surge in fuel costs

IAG ups second-quarter profit despite surge in fuel costs

IAG boosted operating profit 6.7% to €960 million ($1.06 billion) in the second quarter ended 30 June, which the European airline group's chief executive hails as "a good performance" achieved "despite fuel-cost headwinds".

Unit fuel cost was up 12.4%, or 6.3% at constant currency. Passenger unit revenue rose 3.1%, or 1.1% at constant currency, "benefiting from the timing of Easter", Walsh notes.

Non-fuel unit cost was stable, rising 1.6% or 0.4% at constant currency.

Total revenue rose 9.5% to £6.77 billion. Capacity was lifted 5.4%, as new routes were launched by the group's Vueling and Level units while siblings Iberia and British Airways added frequencies.

Walsh credits the group's "unique structure and diverse brand portfolio" with underpinning its "financial resilience and ability to deliver robust results".

IAG is forecasting a 2019 operating profit before exceptional items that is in line with 2018's pro-forma result.

The group expects that, at constant currency, full-year passenger unit revenue will be flat while non-fuel unit cost will show improvement.

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