Flying start for BA owner

The owner of British Airways has posted record first-quarter results, despite the collapse in sterling weighing on the firm.

International Airlines Group (IAG) said operating profit rose 9.7% to £144 million in the three months to March 31, traditionally the weakest quarter of the year for airlines.

However, revenue fell 2.8% to £4.1 billion, and the firm was forced to stomach a £27m hit from the collapse in the value of the Brexit-hit pound.

IAG issued a profit warning after the referendum on June 23, and in October warned that ticket prices may have to rise as a result of sterling’s slump.

However, chief Walsh was upbeat.

“This is a record performance in the first quarter, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing,” he said.

In March the group, which also owns the Aer Lingus and Iberia airlines, launched Level, a new long-haul low-cost airline brand.

Mr Walsh said Level was proving a success with “sales running well ahead of expectations”.

IAG added it expects operating profit for 2017 to improve year-on-year. executive Willie InterContinental Hotels Group saw revenue per room increase by 2.7% in the first quarter of 2017.

The firm behind the Holiday Inn, Crowne Plaza and Hotel Indigo fascias also brought online 7,000 new hotel bedrooms in the period, taking its total to 767,000 globally.

The company operates a number of hotels across Scotland and the former Lower Dens Works in Dundee is being renovated to become a Hotel Indigo outlet.

In addition to its trading update, IHG also revealed that CEO Richard Solomons will stand down next month. Business users only.

On the up: BA owner IAG saw operating profits lift in the first quarter.