British Airways and Iberia parent IAG is expecting to increase operating profits by a level similar to last year, despite adjusting short-term capacity growth.
IAG says it has experienced “some softness” in underlying premium demand and revenue trends have also been affected in the wake of the attack on Brussels airport in March.
The company achieved a first-quarter operating profit of €155 million ($177 million) before exceptional items, compared with a €25 million profit in 2015.
This would have increased to €181 million excluding Aer Lingus, which became part of IAG in August last year.
Chief executive Willie Walsh describes the figures as a “good performance” in the traditionally weakest quarter of the year.
Passenger unit revenues – during a period which included the early Easter holiday as well as the Brussels events – were down by 3.5% while non-fuel unit costs increased by 1.3%.
But IAG says underlying non-fuel unit costs have continued to improve across its companies and it expects to reduce this figure for the year by about 1%.
Source: Cirium Dashboard
