IAG Q1 pre-tax profits soar, but sees impact from Brussels attacks

Airline group IAG said first quarter operating profits were €155m before exceptional items compared with €25m in 2015. Pre-tax profits were up to €124m from a loss of €37m.

Results were boosted by a €181m contribution from Irish carrier Aer Lingus which was acquired in August last year.
Chief executive Willie Walsh said January and February revenues were in line with Q4 2015 trends.

March revenue was affected by the timing of Easter and the Brussels terrorist attacks with the latter continuing into the second quarter, which had led to a moderating of short term capacity growth plans, he added.

The group also expects to reduce its underlying ex-fuel unit costs for the full year by around 1% and expects to generate an absolute operating profit increase similar to 2015.

Passenger unit revenue for the quarter was down 3.5% and 4.7% at constant currency. Non-fuel unit costs for the quarter were up 1.3%.