British Airways parent posts ?278m losses
International Airlines Group (IAG), the parent company of British Airways, has revealed operating losses of €278m, following costs relating to its restructuring of Iberia.
Revenue was up 0.5% for the quarter, although IAG said there had been “unfavourable” currency impacts.
IAG chief executive, Willie Walsh, suggested that underlying revenue growth in strategic markets was encouraging, although noted there was still more to be done on Iberia restructuring.
He said: “We are adapting capacity to demand and are reporting a strong group passenger unit revenue performance, despite 10 days of Iberia industrial action and the weak economic situation in Spain.
“Non-fuel unit costs have risen due to two short term activities which will benefit the group in the long term. Iberia cut capacity in the quarter however its reduction in headcount and labour costs began in earnest in April. British Airways has increased its headcount in advance of the new aircraft arriving this year.
“Following acceptance of the mediator’s proposal, we have provided a further €265 million of employee restructuring costs together with fleet stand-down costs within the exceptional items.
“Since our last results, IAG acquired an additional 44.66 per cent in Vueling bringing the group’s total shareholding to 90.51 per cent of the airline.”
This was posted in Bdaily's Members' News section by Tom Keighley .
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