Falling costs boost Q2 profits for IAG airlines group

On 10 July 2015, Ryanair agreed to an offer made by British Airways owner worldwide Airlines Group (IAG) for the company’s 29.8% share in Aer Lingus. Pre-tax profits were down by 23.4pc to €27.8m.

Non-fuel unit costs for the quarter up 3.2 per cent, down 6.9 per cent at constant currency.

Passenger unit revenue for the quarter increased five per cent, but was down 6.6 per cent at constant currency levels.

“We’ve been meeting the challenge head-on for the past 30 years and both airlines have benefited from the competition”, chief executive, Stephen Kavanagh said yesterday, regarding a mooted “price war” this winter as Ryanair looks to stem increased competition from an Aer Lingus under new ownership.

Wednesday posted a fall in second quarter pretax profit partly due to adverse foreign exchange effect, but said it is well positioned to deliver an improved operating performance in the third quarter and for the full year. Meanwhile, the airline’s total passenger seat factor – proportion of available seats filled against the capacity – remained flat with last year at 80.7 percent.

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.

Revenues were up over 7pc to €72.9m in the same period.

“Ryanair’s acceptance remains a condition of the offer and must be satisfied by August 18 in order for the offer to successfully close”, said IAG in a statement.

But sister airlines Iberia and Vueling both made half-year losses of €4 million and €5 million respectively.