British Airways parent IAG SA reported better than expected profit in the second quarter on a surging demand for travel.
Operating profit rose to €1.25 billion ($1.4 billion) in the three months to June 30 from €301 million a year earlier, the London-based company said Friday. That compares to the €898.8 million average of analysts estimates compiled by Bloomberg. The carrier said demand continued to be strong, driven by leisure travelers.
The carrier said while there was no sign of weakness in forward bookings, it continued to be mindful of wider uncertainties that could affected full-year performance. About 80% of IAG’s passenger revenue is already booked for the third quarter and about 30% for the fourth quarter. Concern is emerging about the durability of a post-Covid surge in travel demand.
Ryanair Holding Plc, Europe’s biggest discount carrier, this week lowered its full-year traffic forecast and said it may need to cut ticket prices to fill seats this winter as passengers become more cost sensitive.
