British Airways owner International Consolidated Airlines Group PLC (LON:IAG) has posted a record first-quarter performance in what is usually the weakest part of an airline’s year.
The FTSE 100-listed group – which also runs, Aer Lingus, Iberia and Vueling – said its first-quarter operating profit before exceptional items rose by 9.7% to €170mln (US$186.6mln), up from €155mln in 2016 and well ahead of analysts forecast for €140.5mln.
The firm added that its total revenue in the period was €4.93bn, down 2.8% on the €5.08bn reported a year earlier but also slightly ahead of expectations.
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IAG said its fuel costs before exceptional items fell by 13.6%, and were down 16.1% at constant currency, while non-fuel costs before exceptionals were down 3.9%, although they rose by 1.4% at constant currency
It said there was an adverse currency exchange impact of €32mln in the quarter, due to the translation of sterling profit into euros.
IAG’s chief executive Willie Walsh, said: "This is a record performance in Q1, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing.”