2 MAY 2016
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International Airlines Group, which owns British Airways, has cut its growth plans because of the effects of the Brussels terrorist attacks, chief executive Willie Walsh said on Friday.
IAG was reporting pre-tax profits of €124m (£96m) for the first quarter, compared with a loss of €37m in 2015.
The group made an operating profit of €155m before exceptional items, an increase of €130m compared to last year. Total revenue was up 7.9% and total cost per ASK decreased by 6.1%.
Walsh described the results as “a good performance with a strong increase in what is traditionally the weakest quarter”, with January and February revenue in line with trends.
However, he added, March revenue was affected by the attacks and this was continuing into the second quarter. The group was also seeing “some softness” in underlying premium demand.
“As a result, IAG has moderated its short-term capacity-growth plans,” Walsh added.
However, he said IAG also expected to reduce its underlying ex-fuel unit costs for the full year by around 1%, and consequently still expects to generate an absolute operating profit increase in 20116 similar to 2015. www.iairgroup.com
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