Published on : Friday, October 27, 2017
Revenue at this company that also is the owner of Aer Lingus, Iberia and Vueling Airlines increased by 2% triggered by 7.9% growth in its cargo division. Willie Walsh who is the chief executive said that all their companies had performed really well though there has been a disruption from severe terrorism and also climate conditions.
Though the international oil prices had risen in the period, the fuel costs of IAG had descended by 6.7% on account of successful hedging.
The company would be paying an interim dividend of 12.5 euro cents per share, up 13% on last year.
Though the numbers have been quite optimistic and reveals a bit prosperity, the shares had plunged about 4% to 644 p, probably because investors were hoping for a more bullish prediction of full-year earnings before exceptional items.
British Airways had suffered IT failure in May that had left 75,000 customers stranded and cost €65 million in compensation claims and knocked £360 million off the market cap of IAG. In March, IAG had launched Level.
Level is a low-cost airline that has flights from Barcelona to San Francisco, Los Angeles, Buenos Aires and Punta Cana in the Dominican Republic.
Pre-tax profits in the nine months to September were up 21.7% to €1.8 billion while the revenues increased by 1.3% to €17.5 billion.