IAG boosted by August jump in premium traffic

City A.M. Reporter
INTERNATIONAL Airlines Group (IAG), the owner of British Airways and Iberia, yesterday said its group traffic measured in revenue passenger kilometres rose five per cent year-on-year in August, helped by 12.6 per cent growth in premium traffic.

The group said that non-premium traffic grew by 3.9 per cent, while its capacity measured in available seat kilometres rose by 5.6 per cent.

The company also said that underlying market conditions were unchanged from guidance given at its recent second-quarter results, with trading conditions at its London hub remaining firm.

However, it said that its performance at Madrid continued to be impacted by weak economic conditions, with short-haul traffic particularly affected.

The performance statistics cover British Airways, including Bmi Mainline and Iberia.

IAG also said that its bmibaby business, which it had already announced will be wound down, will be formally closed when its last flight departs on 9 September.

IAG also revealed new routes for its airlines. Iberia Express will run a new route between Madrid and Amsterdam, while British Airways is launching a new service to Colombo, Sri Lanka from Gatwick starting at the end of March next year.

IAG’s shares closed 0.1 per cent lower yesterday at 139.7p.