International Airlines Group has increased profits by 141 per cent in the first half of 2015 thanks to the strong performance of British Airways.
IAG made an operating profit of €555 million for the six months to June 30, compared with a profit of €230 million for the same period last year, as revenue jumped by 11.6 per cent to €10.4 billion.
This increase in profit was recorded due to the performance of BA which made an operating profit of €570 million, up from a profit of €327 million in 2014. But sister airlines Iberia and Vueling both made half-year losses of €4 million and €5 million respectively.
IAG chief executive Willie Walsh said that these results meant the company was “on track” to reach its targets in 2015 – the airline group is expecting to make an operating profit of more than €2.2 billion.
“We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels.,” added Walsh.
IAG also announced that it would be extending the offer period for the shares of Aer Lingus until August 18, after Ryanair failed to formally accept IAG’s offer for its 29.8 per cent stake in Aer Lingus before the previous deadline of July 30.
The company has so far secured acceptances from 62.5 per cent of Aer Lingus shareholders for the €1.4 billion takeover. But IAG has waived the previous requirement to secure at least 90 per cent of the Irish airline’s shares.
“Ryanair’s acceptance remains a condition of the offer and must be satisfied by August 18 in order for the offer to successfully close,” said IAG in a statement.
Ryanair’s board has already agreed to sell its Aer Lingus shares to IAG but said it would not formally accept the offer until mid-August.