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British Airways-owner International Consolidated Airlines Group SA on Friday said it is well positioned for the key summer season as it reported a narrowed first-quarter loss. Shares in IAG rose 1.0% to 184.70 pence in London early Friday. The Madrid-based airline operator, which also owns Iberia, Vueling and Aer Lingus, said its first quarter pretax loss narrowed to €87 million from €121 million a year prior. Operating profit multiplied to €68 million from €9 million, as total revenue rose 9.2% to €6.43 billion from €5.89 billion last year. Net debt of €7.44 billion was down from €9.25 billion a year ago. Chief Executive Luis Gallego said: ‘Our transformation initiatives and increased demand, including over the Easter holidays, have delivered another very good set of results with improvements to both revenue and operating profit. ‘We are well-positioned for the summer. The high demand for travel is a continuing trend.’ IAG said passenger revenue per available seat kilometre for the first quarter was 4.4% higher than a year ago, reflecting the benefit of the timing of Easter and a continued strong leisure traffic recovery, with business traffic recovering more slowly. Non-fuel unit costs increased by 3.7% from a year prior, driven by investments in the business and the impact of wage settlements agreed during the course of the year. Fuel unit cost fell 4.9% from a year ago reflecting lower average fuel prices more efficient aircraft deliveries, IAG said. IAG reported a 7.0% rise in passenger capacity growth in the quarter from last year. This was led by a 14% rise in average seat kilometres in Latin America & Caribbean, and a 9.0% increase in Europe. Growth in North Atlantic ASKs was a more modest 0.6%. Capacity to the Africa, Middle East & South Asia region increased by 0.4% but revenue declined by 3.4%. IAG said the conflict in the Middle East has impacted flying by most of its airlines to the region. Looking ahead, IAG expects ‘positive long-term, sustainable demand for travel.’ Its full year capacity plans remain for around 7% growth in average seat kilometres, with investment in core markets. It continues to expect non-fuel unit costs to increase slightly for the year reflecting ongoing investments in the business. IAG expects to generate significant free cash flow and to maintain a strong balance sheet, and remains committed to sustainable shareholder value creation and cash returns. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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