Aer Lingus contributes €45m in operating profit to IAG

Aer Lingus recorded an operating profit of €45 million in the period since joining International Consolidated Airlines' Group (IAG) in mid-August with the airline being described by chief executive Willie Walsh as "a great asset".

IAG today reported a €1.25 billion operating profit for the three months to the end of September, as against €900 million for the same period a year ago..

The Irish airline contributed 1.6 points of IAG’s capacity increase and generated €262 million in revenues .

"Aer Lingus made an operating profit of €45 million since it joined IAG on August 18th. While the airline's profitability is seasonal, Aer Lingus is cost-effective and provides a natural gateway to build our business between Europe and North America. It's a great asset for the group," said chief executive Willie Walsh.

It said that at current fuel prices and exchange rates it expects to make a full-year operating profit of between €2.25 and €2.3 billion.

Operating profit for the first nine months of the year totalled €1.8 billion, up 59.7 per cent on the €1.1 billion recorded for the same period a year earlier. On a quarterly basis, operating profit reached €1.25 billion, up from €350 million, including Aer Lingus and €350 million better when the Irish airline is excluded.

British Airways made a profit of €825 million versus €607 million in the third quarter of 2014.Iberia made a profit of €200 million, compared to €162 million a year earlier. Vueling's profit was €178 million, up from €140 million.

Third quarter revenue for IAG was up 15.2 per cent versus last year to €6.75 billion. Passenger unit revenue was up 6.5 per cent in the quarter and up 13.6 per cent for the nine months to the end of September.

IAG yesterday announced its first dividend payment since it was formed following the merger of British Airways and Spanish carrier Iberia. The dividend amounts to 10 cents per share. The group said it expects to pay out 25 per cent of its underlying profit after-tax in dividends for the full-year.

At the end of September the group said it had cash of €6.78 billion, up €1.84billion on the same period last year.