BA owner IAG moves into profit

29th Jul 2011 08:03

British Airways operator International Consolidated Airlines (IAG) moved into profit in the second quarter, but economic weakness in some markets and high oil prices remain a concern.Pre-tax profits in the three months to 30 June totalled €39m, against a loss of €419m in the same period the previous year. Chief executive Willie Walsh said the company, which resulted from the merger of British Airways and Iberia, has seen continued to perform well in premium markets. "Against a background of economic uncertainty, London remains a strong market," he said.He said that the company is on target to achieve synergies from the merger of the two airlines. "We expect significant growth in operating profit this year, with improvements in both our unit revenue and unit cost performance versus 2010 and are on track to reach our synergy targets," IAG said."Our long haul business is stable, with strength in the premium sector, but the short haul European market remains highly competitive."---RG