Flying low

2 August 2019 By Ed Cropley Follow @edwardcropley

The British Airways owner’s top and bottom lines are growing, a rarity among ravaged European carriers. Yet the risk of Britain crashing out of the EU weighs on its valuation. IAG can’t reduce its dependence on UK travellers, but more clarity on post-Brexit ownership would help.

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International Consolidated Airlines Group on Aug. 2 reported better-than-expected operating profit for the second quarter of the year and said it hoped it could reach a deal with pilots who voted last month to strike over pay.

The owner of British Airways and Iberia said operating profit before exceptional items for the three months to the end of June was 960 million euros, up from 900 million euros in the same period of 2018. The consensus of forecasts by analysts was 914 million euros.

IAG also said national regulators of its Spanish, French, Austrian and Irish subsidiaries had confirmed that, in the event of a no-deal Brexit, IAG’s local ownership plans met European Union ownership requirements.

IAG shares were up 2.2% at 4.22 pounds by 0812 GMT on Aug. 2.

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