Low fuel costs and a strong Easter helped the group, which also boasts Aer Lingus, Vueling and Iberia, to increase its total revenue inched up 0.9% to €10.9bn in the six months to June 30, while operating profit after exceptional items rose 13.8% to €898 million.
Passenger revenue per available seat kilometre decreased by 2.6% to €6.50, while non-fuel costs rose 3.5% at a constant currency level, reflecting the effects of the power outage at BA.
IAG said that at current fuel prices and exchange rates it predicted operating profit for 2017 to show a double-digit percentage improvement year-on-year and second half-year passenger unit revenue to increase versus the year previous year.
Willie Walsh, chief executive said IAG had secured a “very strong performance” during the first six months of 2017.
"The underlying trend [is] unit revenue improved, benefitting partially from Easter and a weak base last year,” he said.
"Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways’ customers.
Walsh also touched upon the move by IAG to order three new aircraft for its low-cost long-haul brand Level.
"In June, Level started long-haul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation,” he added.
