The owner of British Airways (OTCMKTS:BAIRY), International Airlines Group (IAG), has reported a surge in profits despite the IT failure in May that left thousands unable to check in baggage and cost the group €65 million.
According to IAG, operating profits for the group before rose 37 percent to €975 million (£871 million) in the first half of 2017. Profits were fuelled by lower fuel costs and a strong Easter.
“We’re reporting a very strong performance in quarter two.” said IAG boss Willie Walsh.
“The underlying trend in unit revenue improved, benefiting partially from Easter and a weak base last year.”
British Airways owner said it gave out €65 million in compensation fees and baggage claims related to the IT meltdown in May.
The company have asked for an independent investigation into the power failure.
“We are doing everything we can to make good the disruption that the customers experienced, but it was an isolated event and I think you’ve got to focus on the fact that BA’s passenger numbers continue to increase,” Walsh told BBC’s Today programme.
“BA’s underlying performance is actually very good, as are the performances of the other airlines within the group, so this is a very strong set of results and reflects a focus that IAG has on providing customer service at prices that customers are willing to pay.”
Walsh remains positive on the outlook for IAG, with high hopes for the rest of the year. In March launched Level, a new long-haul, low-cost airline brand.
“In June, Level started long-haul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation.” he said.
Shares in IAG were up 1.44 percent in early trading.