LONDON--International Consolidated Airlines Group SA (IAG.LN)
said Friday the restructuring at its Spanish unit Iberia was
starting to bear fruit, as the carrier swung to a profit for the
second quarter and said it expected to grow capacity by 5% for the
full year.
"These are positive results for the quarter," Chief Executive
Willie Walsh said. "Several factors have contributed to this
improvement. Firstly, the benefits of Iberia's restructuring are
beginning to show. British Airways' performance has improved, and
Vueling--which joined IAG in April--has continued to manage its
capacity growth effectively by expanding its business while
increasing profits."
IAG, the parent company of British Airways and Iberia, posted a
better-than-expected second-quarter operating profit of EUR245
million, from a year-earlier loss of EUR4 million. An analyst
consensus had forecast operating profit of EUR163 million.
It reported a net loss of EUR503 million for the six months to
June 30, compared with a net loss of EUR207 million a year earlier.
Revenue was EUR8.7 billion, up 4% from a year earlier.
Like rival flag carriers in Europe, IAG has been relying on
long-haul flights while struggling to keep Iberia's shorthaul
business profitable as low-cost carriers such as Ryanair Holdings
PLC (RYA.DB) and easyJet PLC (EZJ.LN), free of legacy costs and
unconstrained by global networks, continue to capture market
share.
Shares closed Thursday at 297 pence valuing the company at
GBP5.5 billion
Write to Marietta Cauchi at marietta.cauchi@wsj.com
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