International Consolidation Airlines Group (IAG) the owner of British Airways, has reported they were hit with foreign exchange headwinds and soaring fuel costs in the first three months of the year.
Operating profit slumped by 60.3% to €135m compared with €340m in 2018 for the same period, profit after tax and exceptional items came in lower by 91.2% at €70m.
Total revenue was up by 5.9% to €5.3bn.
Willie Walsh, chief executive said, “In a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of €135m.”
Given current fuel prices and foreign exchange rates, IAG expects operating profit for 2019 to be in line with 2018.
Walsh attacked the government for their “shocking” lack of progress on 29 March Brexit withdrawal, as consumer confidence is likely to be affected.
He said, “That is likely to damage consumer confidence and act as a further drag on business investment.
“We need to remain very agile in the months ahead.”