British Airways parent IAG has reported an operating profit of £1.7 billion for the third-quarter of the year, up more than 15% from a year ago.
It said revenues over the summer, for the three months to the end of September, rose almost 8% to £7.7bn.
Chief Executive Luis Gallego said the improvement was due to the ‘effectiveness of our strategy and group-wide transformation’.
“Demand remains strong across our airlines and we expect a good final quarter of 2024 financially,” he added.
He said the North America market was ‘very strong’ for BA, which boosted capacity 3.9% year-on-year, with 89% of summer seats sold compared to 87% last year, leading to a 3.5% rise in revenues.
However, BA has announced a suspension of some of its transatlantic services this winter and for next summer due to a lack of spare engine parts for its Boeing 787s.
During the last quarter, BA’s sister airline Aer Lingus was hit by a pilot strike and increased competition from Dublin, but IAG said: “We continue to see strong customer demand in our intra-European network, where capacity increased by 5.3% in the quarter and passenger unit revenue increased by 1.4%.
“All of our short-haul airlines saw good demand and revenue performance across Europe in the quarter.
Domestic flights in both the UK and Spain, home of IAG’s Iberia, also performed well, but elsewhere in the world IAG saw passenger unit revenue fall 15%.
However, profits were boosted by a 4.2% fall in fuel costs, due to lower average prices and more efficient aircraft deliveries.
Overall, IAG said it plans to increase capacity by around 6% for the full year.
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It said revenues over the summer, for the three months to the end of September, rose almost 8% to £7.7bn.
Chief Executive Luis Gallego said the improvement was due to the ‘effectiveness of our strategy and group-wide transformation’.
“Demand remains strong across our airlines and we expect a good final quarter of 2024 financially,” he added.
He said the North America market was ‘very strong’ for BA, which boosted capacity 3.9% year-on-year, with 89% of summer seats sold compared to 87% last year, leading to a 3.5% rise in revenues.
However, BA has announced a suspension of some of its transatlantic services this winter and for next summer due to a lack of spare engine parts for its Boeing 787s.
During the last quarter, BA’s sister airline Aer Lingus was hit by a pilot strike and increased competition from Dublin, but IAG said: “We continue to see strong customer demand in our intra-European network, where capacity increased by 5.3% in the quarter and passenger unit revenue increased by 1.4%.
“All of our short-haul airlines saw good demand and revenue performance across Europe in the quarter.
Domestic flights in both the UK and Spain, home of IAG’s Iberia, also performed well, but elsewhere in the world IAG saw passenger unit revenue fall 15%.
However, profits were boosted by a 4.2% fall in fuel costs, due to lower average prices and more efficient aircraft deliveries.
Overall, IAG said it plans to increase capacity by around 6% for the full year.
The post BA parent IAG reports increase in summer profit appeared first on Travel Gossip.
Continue reading...
