BA owner hit with fuel cost and cur­rency head­winds

The Scotsman - - BUSINESS -

Bri­tish Air­ways owner Internatio­nal Con­sol­i­dated Air­lines Group ( IAG) was hit by rock­et­ing fuel costs and for­eign ex­change head­winds in the first quar­ter.

The firm re­ported a 60.3 per cent slump in op­er­at­ing profit be­fore ex­cep­tional items to € 135 mil­lion (£ 116.6m), com­pared to € 340m in the same pe­riod last year.

Profit af­ter tax and ex­cept i onal i t e ms was 91 . 2 p e r cent lower at € 70m. This was de­spite a 5.9 per cent in­creased in to­tal rev­enue to € 5.3 bil­lion.

Pas­sen­ger rev­enue per avail­able s eat kil ome­tre, a key in­dus­try met­ric for prof­itabil­ity, was down 0.8 per cent to 6.16 euro cents, ver­sus 6.21 cents last year.

Chief ex­ec­u­tive Wil­lie Walsh, who has pre­vi­ously warned over Brexit, said: “In a quar­ter when Euro­pean air­lines were sig­nif­i­cantly af­fected by fuel and for­eign ex­change head­winds, mar­ket ca­pac­ity im­pact­ing yield and the tim­ing of Easter, we re­mained prof­itable and are re­port­ing an op­er­at­ing profit of € 135m.”

0 BA is one of the world’s big­gest air­lines link­ing more than 180 des­ti­na­tions in­clud­ing Ed­in­burgh

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