International Consolidated Airlines Group has reported second quarter operating profit of €805 million before exceptional items for the six months to June 30th.
Passenger unit revenue at the group – which operates Iberia and British Airways – for the quarter was up 1.5 per cent, or four per cent at constant currency.
Non-fuel unit costs before exceptional items for the quarter were down 0.3 per cent, or up 3.5 per cent at constant currency.
Willie Walsh, IAG chief executive, said: “We’re reporting a very strong performance in quarter two with an operating profit of €805 million before exceptional items which is up from €555 million last year.
“The underlying trend in unit revenue improved, benefitting partially from Easter and a weak base last year.
“Non-fuel unit costs before exceptional items are up, at constant currency.
“These costs include the financial impact of the power failure which affected British Airways’ customers.
Operating profit before exceptional items for the half year stood at €975 million, compared with €710 million last year, up 37.3 per cent, including the adverse foreign exchange impact for the half year of €44 million.
Adjusted net debt to EBITDAR improved by 0.4 to 1.4 times.
Earlier this year IAG launched Level, a new low-cost carrier, as it seeks to gain traction in the rapidly developing cut price transatlantic market.
Walsh added: “In June, LEVEL started long-haul flights from Barcelona to four destinations.
“Sales continue to be well ahead of our expectations.
“We’ve ordered three additional aircraft and are considering other European bases for the operation.”
At current fuel prices and exchange rates, IAG expects its operating profit for 2017 to show a double-digit percentage improvement year-on-year.
The group expects second half passenger unit revenue (passenger revenue per ASK) to show an increase versus last year, at constant currency.