IAG traffic ascends to 15.7pc in July

Passenger traffic growth at British Airways and and Iberia owner International Consolidated Airlines Group (IAG) soared higher in July.

The airline, which also owns Aer Lingus and Vueling, lifted July's group traffic, which is measured in revenue passenger kilometres, by 15.7% versus the same month last year, and up from 13.6% this June.

Group capacity, measured in available seat kilometres rose by 14.3%, or 4.6% on a pro-forma basis, up from 13.2% and 3.3% in June.

The load factor – which measures how full flights were – inched up to 86.8% in July compared to 85.7% in the same month last year.

Commenting on strategic developments, IAG said it had converted two Airbus 330-300 longhaul aircraft options into firm orders for Aer Lingus, which will be delivered in 2017 and will be used to expand its transatlantic network.

On Tuesday, it was reported that Qatar Airways had taken advantage of the recent weakness in IAG's shares to increase what it described as a "purely financial" investment in the Anglo-Spanish carrier, upping its holding to 20.01% from 15.67%.

This followed interim results last week, which showed second quarter operating profit reaching €555m before exceptional items, edging up from €530m last year.

Excluding Aer Lingus, in which IAG holds a 98.05% stake, operating profit in the second quarter was €487m, with a net foreign exchange hit for the quarter of €148m.

Passenger unit revenue for the quarter dropped 10.2%, or 6.2 % at constant currency and 6.5% excluding Aer Lingus.