IAG results

British Airways was again the star performer as IAG published its results for the first six months of 2013 last week.  In a bullish mood CEO Willie Walsh reported losses of €506m against €390m last year.  IAG says the loss is down to exceptional one-off items following restructuring at Iberia. 

BA's performance further strengthened, with operating profit at €247m in the period, compared to €94m in 2012.  With more fuel efficient new aircraft arriving in 2014 it still begs the question whether IAG was a mistake and British Airways should be an independent airline?

IAG has been implementing a significant restructuring at Iberia which has resulted in industrial action and major job cuts.

Mr Walsh said: "The restructuring plan is proving to be effective, but there's still a long way to go.  To date, about 1,700 people have left Iberia, by the end of the year that will have increased to about 2,400 and there will be more next year".

Vueling, which joined IAG on 26 April, achieved an operating profit of €27m for the rest of the quarter.  “The airline has continued to manage its capacity growth effectively by expanding its business while increasing profits”, Walsh said. “It’s also benefitted from its Barcelona base where it has developed a strong competitive position”. www.iairgroup.com

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