Drop in fuel prices helps boost IAG profits

On the IAG bid – the deadline for full acceptance of which elapses tomorrow – Mr Kavanagh said the new ownership would strengthen Aer Lingus and positively affect Ireland’s economy and tourism sector.

Chief Executive Officer Willie Walsh has driven productivity gains at BA, Iberia and the Vueling discount arm and is close to bolstering the group’s position on North American routes with the acquisition of Ireland’s Aer Lingus Group Plc.

British Airways’ operating profit improved to 453 million euros from 332 million euros a year ago.

However, revenue was down 1.2 percent at constant currency.

This increase in profit was recorded due to the performance of BA which made an operating profit of €570 million, up from a profit of €327 million in 2014.

“The adverse effects of unfavourable FX movements on performance which were evident in this quarter will moderate in the second half of the year as a result of a higher proportion of US dollar denominated revenues”, said CEO, Stephen Kavanagh.

An Aer Lingus plane averted disaster when it was forced to swerve to avoid a private jet which accidentally entered its runway as the plane prepared to take off. Long haul revenue was up by 24.4pc to €172.5m, with capacity up 9.7pc and revenue per seat increasing by 14.4pc.

Looking ahead, the firm said that at current fuel prices and foreign exchange rates, it still expects to generate an operating profit in excess of 2.2 billion euros.

Despite making a net loss, the Dublin-headquartered airline’s revenues rose 7.4 per cent year-over-year to €749m ($821m) in H1.