Business News

BA-owner IAG forecasts double-digit rise in full-year operating profit

Key Points
  • Profits: 975 million euros ($1.14 billion) for the six months to June, up 37.3 percent year-on-year.
  • Passenger unit revenue up 1.5 percent in the second quarter.
A British Airways Airbus A380 at Heathrow Airport in London.
David Dyson | British Airways

British Airways owner said on Friday that it expects operating profit for 2017 to show a double-digit percentage improvement following a strong second quarter, despite a massive power outage which grounded some flights.

IAG said that operating profit for the six months to June 30 was 975 million euros, up 37.3 per cent compared to the previous year.

The company said that non-fuel unit costs before exceptional items were up, including the financial impact of a massive power outage which grounded flights at Heathrow and Gatwick over a holiday weekend in May.

Passenger unit revenue rose 1.5 percent in the quarter, delivering its first year-on-year increase in quarterly revenue per passenger mile flown since 2014.