British Airways made an operating profit of £407m* for the third quarter and made £559m* in the first nine months.
Revenue was up eight per cent thanks to a strong London and transatlantic market and the revenue bounce back from the Olympics. Non-fuel unit costs at constant currency were flat for the quarter. Fuel costs were virtually flat in sterling.

Chief executive Keith Williams said: “These are a solid set of results which reflect our hard work in controlling our costs and driving revenue.

“For customer recommendation, the picture is not as clear as it has been because we have introduced new methods for measuring customer views.

“However, we do know the last quarter has been affected by below target punctuality performance, which inevitably hits how satisfied our customer feel about us.”

The airline said it was working hard to get it target punctuality performance back on track.

Keith continued: “The changes we’ve made to our disruption processes and the customer response team will help; so will a clear focus on working together to get the operation back on track. When we combine strong punctuality with consistently outstanding service, it’s a winning formula. In the first half of the year, we’d seen a steady increase customer recommendation so we know we can do it.”

The airline said it was on schedule to trigger a bonus, with the size of payment now dependent on action to fix the operation.

As the airline heads into the final quarter of the year, traditionally one of the weakest, it needs to stay focused on costs, fix the operation and put customers first.

“We need to be financially strong so we can continue investing in great products and in our people. Investment, outstanding service and cost control will grow revenue and customer loyalty, protect our pensions and make a return for shareholders. It’s all part of our vision to be the most admired airline,” added Keith.

BA 3rd Quarter Headlines

  • Operating profit £407m* (2012: £216m*)
  • Revenue up eight per cent
  • Non-fuel unit costs were flat at constant currency
  • Ready-to-go 51 per cent
  • Fuel costs virtually flat in sterling

*before exceptionals

IAG 3rd Quarter Headlines

  • Operating profit €690m* (2012: €270m* profit)
  • Total revenue up 6.9 per cent
  • Overall costs down 1.5 per cent*
  • Nine-month operating profit €657m* (2012: €17m*)

 

IAG group results

IAG has announced its results for the third quarter and nine months of 2013. IAG chief executive Willie Walsh said: “These are strong results with an operating profit in the quarter of €690m. The group’s revenue was up 6.9 per cent and overall costs were down 1.5 per cent.

“Iberia made an operating profit of €74m up from €1m last year. This is an improved performance bearing in mind it’s the strongest quarter of year. However, the airline must continue to implement its restructuring plan and reach agreement on productivity changes to bring about long-term sustainable profits and growth.

“In the first full quarter to show Vueling’s performance, the carrier made an operating profit of €139m. Vueling adds value to the group with its lower costs and successful product strategy.

“British Airways’ performance continues to benefit from a strong London and transatlantic traffic market as well as a €100m revenue bounce back from the Olympic effect last year.”

Trading outlook

The group expects an operating profit for 2013, before exceptional items, of around €740m. Current trading is in line with underlying recent trends. Its capacity plans remain unchanged.

For the full year, IAG expects to grow group capacity by 5.2 per cent (a reduction of 2.4 per cent excluding Vueling). In addition, it should see a reduction in non-fuel unit costs in 2013.

Moving into 2014, IAG expects the driver of revenue growth to shift from yield to volume due to new British Airways’ route launches and the strong growth of Vueling.