British Airways owner sees losses grow

International Airlines Group, formed by the merger of British Airways and Iberia, said first quarter losses more than doubled as higher fuel costs and weakness in Spain helped wipe out any benefits from rising revenues.

The company reported an operating loss of 249m euros (£199.65m) before exceptional items, up from a 102m euro loss a year ago.

Analysts had expected a figure of between 230m and 250m euros, according to the company.

Revenue for the quarter rose 7.8 per cent versus a year earlier to 3.9bn euros, the company said in a results statement on Friday.

“Demand in London remains strong,” IAG said. “The Spanish and wider Euro zone macro-economic background deteriorated in Q1, and this is reflected in a worsening commercial performance from our Madrid hub.”

The group’s fuel costs for the quarter were 24.9 per cent higher than a year earlier at 1.4bn euros.