The IAG Group has released its latest numbers, and all is going well it seems, making profits of £410 million. £190m in 2010, with revenues up 10.4 per cent.
Pre-tax profit was up from £70m in 2010, to £426m
However, with all these good numbers, there is a heck of a sting in the tail. And that’s in the form of the Air Passenger Duty collected, which comes in at a whopping £500 million, and costs for fuel increasing by up 29.7 per cent.
Like O’Leary of Ryanair, Willie Walsh also notes that:
“British aviation’s competiveness is undermined by the UK government’s determination to continually increase Air Passenger Duty with the latest rise due this April”.
For IAG, this has had an impact with it’s British Airways unit, by reducing new hires and postponing the re-introduction of a 747-400 back into the fleet. The fact it’s also saving a bundle on money by keeping these aircraft on the ground is of course besides the point.
Moving to other airlines in the group, Iberia Express is still set for a March launch (which is mired in Union battles). However the hubs and spoke network Iberia has is subject to restructured. Expect fun there. In regards to British Midland Airways, subject to approval – the slots are being eyed for longhaul growth, as well as supporting the shorthaul network. Read into that what you will, but that says some of the slot sitting services BMI operate may not be long for this world hopefully.
Positive news for IAG – and in this climate, that’s not a bad thing.