IAG: keeps 2018 full-year guidance after second-quarter
(CercleFinance.com) - British Airways owner IAG kept its 2018 profit outlook unchanged on Friday, despite posting "another good set of results" for the second quarter, due to strong demand.
At current fuel prices and exchange rates, the airline group - which also owns Iberia, Aer Lingus and Vueling - still expects its operating profit for 2018 to rise year-on-year.
Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currencies, it said.
In the second quarter IAG made an operating profit of 835 million euros before extraordinary items, up from 790 million euros in the same period of 2017.
Passenger unit revenue for the quarter rose by 2.3% at constant currencies, while non-fuel unit costs before extraordinary items fell by 2% at constant currencies.
However, fuel unit costs over the quarter jumped 15% at constant currencies, with higher oil prices.
UBS analysts cited "broadly in-line second-quarter results with no change to guidance for full-year 2018."
As a result, IAG shares dropped 4.3% in morning trading on the London Stock Exchange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
At current fuel prices and exchange rates, the airline group - which also owns Iberia, Aer Lingus and Vueling - still expects its operating profit for 2018 to rise year-on-year.
Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currencies, it said.
In the second quarter IAG made an operating profit of 835 million euros before extraordinary items, up from 790 million euros in the same period of 2017.
Passenger unit revenue for the quarter rose by 2.3% at constant currencies, while non-fuel unit costs before extraordinary items fell by 2% at constant currencies.
However, fuel unit costs over the quarter jumped 15% at constant currencies, with higher oil prices.
UBS analysts cited "broadly in-line second-quarter results with no change to guidance for full-year 2018."
As a result, IAG shares dropped 4.3% in morning trading on the London Stock Exchange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.