British Airways parent company IAG has reported a return to profit in the last quarter.
IAG, parent company of British Airways, Iberia and Vueling, reported an operating profit of 245 million euros (£214) for the second quarter of the year, a significant improvement on the 4 million euro loss reported for the same period last year.
The turn-around in fortunes is partly down to an improvement in trading at Iberia, with losses at 35 million euros, down from 95 million previously, but mainly a result of an increase in profits at British Airways , up from 94 million euros to 247 million euros. Vueling, which finally came under the control of IAG in April also contributed 26 million euros in profits for the quarter.
Commenting on the results, IAG CEO Willie Walsh stated: “This is the first step in the restructuring but it is already bearing fruit with Iberia’s [second quarter] losses down from €93m last year to €35m, reversing the negative trend of the last 11 quarters”.
He went on to advise that more than 1,700 staff have now left Iberia since re-structuring of the airline begun, with remaining staff seeing signifcant cuts in their salary ranging from 11% to 18%.
With IAG’s results beating market expectations, IAG was this morning biggest rises on the FTSE 100 with the share price up 3.5% at 307.80.