IAG cuts losses in first financial results

International Airlines Group (IAG), the company created through the merger of British Airways and Spanish airline Iberia, has posted a reduction of revenue losses in its first financial results since it began trading in January.

AIG: merged airline group announce results
AIG: merged airline group announce results

IAG, the third biggest airline group in Europe behind Lufthansa and Air France KLM, reported a loss in pre-tax profit of €47 million for the first quarter, compared with a €273 million loss in pre-tax profit for the two airlines in the same period last year.

The group reported a 15.4% rise in revenue from €3,152 million for the three months to 31 March 2010 to €3,363 in the first quarter of 2011.

Willie Walsh, chief executive of IAG, said: "These are the first ever IAG results and they show an improved performance compared to last year.

"The continued focus on cost control has been achieved while we have seen some measured increases in capacity. We have been able to increase capacity without additional aircraft and employees, highlighting the good work that has been done in previous years.

Walsh said that fuel costs remain the "biggest challenge" facing the industry, reporting a 31% rise for the airline group in the first quarter.

"We have been working hard to establish IAG over the past few months and are confident that we are on track to deliver our synergy targets," he added.

British Airways and Iberia completed their merger on the 21 January and began trading on the London Stock Exchange as IAG
. Both airlines have said that they will keep their own branding under the new holding company.

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content


1 Why creative people have lost their way

What better way to kick off the inaugural issue of Campaign's monthly print offering than with another think piece on the current failings of our industry, written by an embittered, pretentious creative who misses "the way things used to be"...


1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).