IAG share price takes off as group unveils ‘record’ Q1 performance

on May 5, 2017
Updated: Oct 21, 2019

Shares in International Consolidated Airlines Group (LON:IAG) have jumped more than five percent in London this morning, as the British Airways parent’s profits beat analyst expectations in what is traditionally a weak quarter for the company. The blue-chip group, which also owns Iberia, Aer Lingus and low-cost carriers Vueling and Level, further expects to deliver higher operating profit this year.

As of 08:27 BST, IAG’s share price had surged 5.68 percent to 604.50p, outperforming the broader market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.16 percent lower at 7,236.22 points. The group’s shares have added more than 17 percent to their value over the past year, and are up by some 35 percent in the year-to-date.
IAG announced in a statement this morning that its first-quarter operating profit before exceptional items had climbed to €170 million, as compared with €155 million in the prior-year period, and well ahead of the €140.5-million forecast of Reuters-polled economists. Total revenue meanwhile dipped 2.8 percent to €4.9 billion.

“This is a record performance in Q1, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing,” IAG’s chief executive Willie Walsh commented in the statement. Going forward, the British Airways parent noted that it expects its operating profit for 2017 to show an improvement year-on-year.
The company further noted that its new transatlantic low-cost carrier Level had already been ‘extremely successful’ with sales running ahead of expectations. The new budget airline is scheduled to start flying from Barcelona to Los Angeles, San Francisco, Punta Cana and Buenos Aires next month.
IAG said in a separate statement that its traffic, measured in revenue passenger kilometres, had increased 10 percent last month. Capacity, measured in available seat kilometres, rose by four percent, while premium traffic came in seven percent higher year-on-year.
As of 08:53 BST, Friday, 05 May, International Consolidated Airlines Grp share price is 599.00p.

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