International Airlines Group loses $43.7 million in the first half, British Airways brings the new Airbus A380 to Frankfurt

British Airways (London) brought its new Airbus A380 to Frankfurt (above) on August 2 as the flag carrier continues to test out the new type on its short haul European routes before it is introduced on longer international routes.

In other news, parent International Airline Group (IAG) lost $43.7 million in the first half of 2013. However IAG had a good second quarter as it managed to cut losses at Iberia in the second quarter to $39.7 million. IAG has cut 1,700 jobs at Iberia (Madrid) and plans to cut another 1,700 by 2015.

IAG issued this financial statement:

International Consolidated Airlines Group (IAG) presented Group consolidated results for the six months to June 30, 2013.

IAG period highlights on results:

  • Second quarter operating profit €245 million (2012: loss €4 million) before exceptional items, based on strong passenger unit revenues and non-fuel unit cost improvements
  • Before Vueling at constant currency, second quarter passenger unit revenue up 4.8 per cent and non-fuel unit costs down 0.2 per cent
  • Operating loss for the half year €33 million (2012: loss €253 million) before exceptional items
  • Revenue for the half year up 2.1 per cent to €8,707 million including 1.7 per cent adverse currency impact
  • Passenger unit revenue for the half year up 2.8 per cent (4.6 per cent at constant currency), on capacity increase of 1.2 per cent
  • Fuel costs for the half year down 3.7 per cent to €2,864 million (2012: €2,973 million). Fuel unit costs down 4.7 per cent at constant currency
  • Non-fuel costs before exceptional items for the half year up 1.1 per cent at €5,876 million. Non-fuel unit costs down 0.2 per cent, up 0.9 per cent at constant currency
  • Cash €3,627 million at June 30, 2013, up €718 million including €549 million of Vueling cash
  • Adjusted gearing up 3 points to 54 per cent including Vueling

Willie Walsh also stated subsidiary Vueling Airlines (Barcelona) would be expanding again and would be taking on a larger role in intra-European routes. Higher-cost Iberia will be reducing its presence in Europe.

Copyright Photo: Bernhard Ross/AirlinersGallery.com. British Airways’ Airbus A380-841 G-XLEA (msn 095) taxies to the gate at Frankfurt.

British Airways: AG Slide Show

Video: British Airways has introduced this new “A Ticket to Visit Mum” video for the Indian market: