IAG losses narrow in first results

6th May 2011 07:19

International Consolidated Airlines saw an improved performance in the first quarter as it reported its first results since forming from the merger of British Airways and Spain's Iberia.The company posted a pre-tax loss of €47m (£28.5m) for the three months to 31 March, much narrower than the €273m deficit that would have been seen in the same period the previous year had the two companies existed as one entity then. Revenues soared to €3.64bn from €3.15bn.The fall in losses was much bigger than the drop to €199m predicted by the broker RBS Hoare Govett. The first quarter of 2010 - was characterised by industrial strife, at least for British AirwaysBut high oil prices are a big worry for the company. Fuel costs were up by 30% at €1.13bn."These are the first ever IAG results and they show an improved performance compared to last year," said chief executive Willie Walsh." Revenue is up due to increased volumes, particularly in the premium cabins, and improved yields which also showed good premium growth. "He added: "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."IAG saw an improvement in passenger capacity and in revenues per passenger during the three month period.The company also released traffic figures for April. Group traffic measured in revenue passenger kilometres rose by 24.9% versus April 2010. Last year's ash cloud resulted in six days of lost flying in April.---RG