British Airways owner's profits soar after strong customer demand
The airline group, which also owns Vueling, Iberia and Aer Lingus, reported a more than third increase in second-quarter operating profit to €1.7 billion in the three months ended June 30, well ahead of City forecasts of €1.4 billion.
Total revenue increased 6.8 per cent to €8.8 billion, driven by a 4.9 per cent rise in passenger revenue to €7.8 billion year-on-year.
A bumper performance came despite the group booking a €50 million hit from the closure of Heathrow after the North Hyde substation fire in March.
'We continue to benefit from the trend of a structural shift in consumer spending towards travel,' Luis Gallego, chief executive, said on Friday.
Gallego said the results gave him confidence that the FTSE 100 group would be able to create value for 'shareholders through our sustainable dividend and share buyback'.
IAG brought back dividends for the first time since the pandemic last year amid a long-running boom in travel demand. It will provide an update for investors on payouts in November. Shares in the group have risen more than 130 per cent over the past 12 months.
Before the results, analysts had been concerned about a number of geopolitical and macroeconomic headwinds, including jet fuel prices in the wake of Israel's conflict with Iran and the impact of President Trump's tariffs on consumer spending.
IAG said the group's airlines had 'all benefited' from lower fuel prices. Fuel costs this year were down €291 million, or 7.6 per cent year-on-year, driven by lower prices and only partially offset by increased flying volumes.
IAG said on Friday it had seen strong demand across its core markets in Europe, Latin America and the North Atlantic.
It did, however, note some 'softness' in US economy bookings, a warning that sent shares down by about 1.4 per cent amid investor concern over the impact of Trump's trade policy and a more hostile US border on transatlantic travel.
IAG said it had partially mitigated tempered US economy bookings via strength in its premium cabin offering, as capacity across the North Atlantic grew by 1.1 per cent over the half year.
In May the European Travel Commission warned of 'heightened uncertainty' in the transatlantic market. Trips between the UK and US have remained broadly level this year at Heathrow, British Airways' primary hub, at 9.7 million, although there was a slight dip before the summer.
Globally, half-year passenger numbers declined slightly, by 0.7 per cent to 57.8 million, although this was against a record year of demand in 2024. The company recently announced a multibillion-pound order for 53 intercontinental aircraft from Boeing and Airbus as the post-pandemic travel boom shows little sign of a tail-off.
IAG's interim results were published hours after Heathrow submitted its long-awaited plans for a third runway, as part of a £50 billion investment in expanding its infrastructure.
The hub's main airlines, which include British Airways and Virgin Atlantic, are generally supportive of growing the UK's biggest airport. However, they have backed alternative proposals from the billionaire property developer Surinder Arora for a shorter, 2,800m third strip.
The airport's plan, which is entirely privately funded, includes a contentious proposal to divert a huge section of the M25 through a tunnel under the new runway.
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The Sun
19 minutes ago
- The Sun
Four-star migrant hotel hides Hilton signs after asylum seekers arrive in apparent bid to hide use from protesters
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The Sun
19 minutes ago
- The Sun
Hidden impact of UK's shoplifting epidemic revealed as crime wave costs every household £150 a year through price hikes
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A spokesman for TGJones said: 'The high street is facing increased levels of crime and we have been taking action to ensure our stores remain welcoming places for our colleagues and customers.' 7 Shopkeeper Ben Selvaratnam in Croydon Credit: Paul Edwards
Daily Mail
an hour ago
- Daily Mail
Laura Hamilton hits back at cruel troll who said she was 'too old' to wear bikinis as she shares a glimpse from her lavish holiday
Laura Hamilton has hit back at a cruel troll who said she was 'too old' to wear bikinis as she shared a glimpse from her lavish holiday. The A Place In The Sun star, 43, has been enjoying a family holiday at Forte Village resort in South Sardinia. Joined by her children Rocco, 11, and Tahlia, 10 - who she shares with ex-husband Alex Goward - Laura has shared an array of gorgeous snaps as she soaked up the Italian sun. However, the blonde beauty was forced to hit back at a comment from one follower who cruelly said she was too old to wear a bikini. In a clip shared to Instagram, Laura was sat poolside as she flaunted her incredible figure in a blue and white swimsuit. She lounged on a day bed with her daughter as they waved while the camera panned out. In a caption, Laura made a poignant jibe at the troll as she penned: 'Who decides when we're 'too old' for anything? 'I recently read a comment saying I was too old to wear a bikini… and it honestly made me stop and think for a second. 'But then I reminded myself, life's way too short to worry about what other people think. 'Today I'm wearing a swimsuit, not because of the comment I read but because I wanted to and I feel comfortable in it!' 'We all have days when we feel self-conscious, but we deserve to enjoy the sunshine, the beach, the pool, whatever makes us happy, no matter our age and whether we choose to wear a swimsuit or a bikini!! 'Live your life and feel good in your own skin' Fans flocked to comments on her post as many were shocked by the troll's unkind remarks. Comments included: 'You keep going and you look amazing. While you've got it flaunt it'; 'Today I'm wearing a swimsuit, not because of the comment I read but because I wanted to and I feel comfortable in it,' she penned 'Absolutely not! Bikinis don't come with age restrictions—just confidence requirements! The only age limit is the age you stop caring what other people think'; 'People that say negative comments are just jealous! Do whatever makes you feel happy'; 'Wow, glad you didn't listen, some people should keep their comments to themselves. We are all different and we should do and wear what makes us happy.' Earlier this year, Laura revealed that she went on a date with Shaggy - and he made her pay. Laura, who split from husband Alex Goward, 44, in 2022 after a decade of marriage, shared details about her dating life in a new interview on Friday. Speaking exclusively to DailyMail Laura confirmed that she was still single and having fun as she recalled a surprise date from over 20 years ago. Recounting meeting up with Shaggy, she explained: 'I met him for coffee and I had to pay for it. It was at Heathrow airport. 'I'd been working with him, and he said, 'I really want to meet up with you and talk about work opportunities.'' As she soaked up the sun, the blonde beauty hit back at a comment from a follower who said she was too old to wear a bikini Confirming that he made up a song and sang it to her, she continued: 'God, that was over 20 years ago. I'm not sure he'd recognise me now.' Adding of her dating life now, Laura said: 'I'm busy working and dating and having fun, and I prefer to find people naturally rather than being on dating apps. 'I like to go out and meet people who have common interests. I made a decision going forward that I want to keep that aspect of my life private. 'I think it's really important that if I'm dating people - and I have been dating people - if they're not in the public eye, then they have a right to privacy. 'Just because I'm in the public eye – you never know what their job is, and they might need privacy for security reasons, and so I'm always mindful of that.' Laura shares two children Rocco, 12, and Tahlia, 10, with her ex-husband Alex, they split after 13 years together. In a statement at the time, she wrote: 'This isn't something I ever thought I'd be saying but, after 13 years of being together Alex and I have separated. 'Our children are and always will be our number one priority and we would respect privacy for our family at this time.' She has been a presenter on A Place in the Sun since 2012 and regularly posts pictures from her sun drenched holidays and filming trips on Instagram. Laura also explained that her time on the Channel 4 show has seen her through so many life changes, notably her engagement, the births of her children and her divorce. The former Dancing On Ice star described feeling like she had 'failed' amid their separation, which saw Laura move out of the couple's Surrey family home. She said: 'We are co-parenting, and it works. But even that, you know, I kind of felt like I had failed.'
