IAG into profit

British Airways owner IAG, whose portfolio also includes Iberia, Iberia Express and Vueling, reports an unusual winter season profit, totally from BA.  The airline group, which is in the process of trying to acquire Aer Lingus, has confirmed an underlying operating profit of €25m for the three months ended 31 March compared to a loss of €150m for the same period last year.

IAG saw lower fuel bills and said its rate of profit improvement would slow in the current quarter.

"Fuel in the second quarter will show an increase because of the movement in the euro-dollar principally, so it is a significant issue," noted Willie Walsh, Chief Executive of IAG.

European airlines buy fuel in dollars.

IAG gave no update on its plan to buy Aer Lingus, as it waits for the Irish state to decide whether to sell its 25% stake.

"It's not a distraction for us so from that point of view we're not under any pressure, nor are we intending to put any pressure on anybody involved in the process," Walsh said. 

Normally very low profile when it comes to general industry affairs Walsh also said that expansion of Gatwick or Heathrow was unlikely, spoke of political apathy over aviation and criticised APD.   www.iairgroup.com

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