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| Airline group IAG moves into profit | Airline group IAG moves into profit |
| (35 minutes later) | |
| British Airways owner IAG has moved into profit for the first half of the year after an improved performance from its Spanish airline, Iberia. | British Airways owner IAG has moved into profit for the first half of the year after an improved performance from its Spanish airline, Iberia. |
| The group made a pre-tax profit of 155m euros ($207m; £123m), compared with a 177m-euro loss a year ago. | The group made a pre-tax profit of 155m euros ($207m; £123m), compared with a 177m-euro loss a year ago. |
| Iberia, which has been loss-making for a number of years, made an operating loss of 95m euros. | Iberia, which has been loss-making for a number of years, made an operating loss of 95m euros. |
| Last week, it signed an agreement to shed an extra 1,427 jobs, IAG chief executive Willie Walsh said. | Last week, it signed an agreement to shed an extra 1,427 jobs, IAG chief executive Willie Walsh said. |
| In early trading on Friday, IAG shares increased more than 4% in value, but dropped back again later in the morning. | |
| "This performance shows that we are making further solid progress," Mr Walsh said in a statement. | "This performance shows that we are making further solid progress," Mr Walsh said in a statement. |
| Group passenger numbers increased to 35 million from 29 million in the first half of 2013. | Group passenger numbers increased to 35 million from 29 million in the first half of 2013. |
| Mr Walsh said that Iberia's restructuring "continues to have a positive impact" on the group, and that 16 new aeroplanes had been ordered for the Spanish airline. | Mr Walsh said that Iberia's restructuring "continues to have a positive impact" on the group, and that 16 new aeroplanes had been ordered for the Spanish airline. |
| Eight Airbus A350-900s and eight Airbus A330-200s will be joining its long-haul fleet, he said. | Eight Airbus A350-900s and eight Airbus A330-200s will be joining its long-haul fleet, he said. |
| Iberia narrowed its operating losses from 551m euros the year before. In 2013, the Spanish airline's losses acted as a drag on the profits made by BA and low-cost airline Vueling. | Iberia narrowed its operating losses from 551m euros the year before. In 2013, the Spanish airline's losses acted as a drag on the profits made by BA and low-cost airline Vueling. |
| In the first half of 2014, BA made a profit of 327m euros. | In the first half of 2014, BA made a profit of 327m euros. |
| IAG said it would aim to make its flights more cost-efficient by cutting planned capacity on flights by three percentage points for the winter 2014 season. | IAG said it would aim to make its flights more cost-efficient by cutting planned capacity on flights by three percentage points for the winter 2014 season. |
| The cuts are mainly due to slower-than-expected growth on transatlantic routes, the firm said. | The cuts are mainly due to slower-than-expected growth on transatlantic routes, the firm said. |
| "We continue to see it as a growth market, but we're going to adapt our capacity to better match the rate at which the market is growing," Mr Walsh said. | "We continue to see it as a growth market, but we're going to adapt our capacity to better match the rate at which the market is growing," Mr Walsh said. |
| Investment banking firm Jefferies said that the airlines' capacity plans provided "relief". | Investment banking firm Jefferies said that the airlines' capacity plans provided "relief". |
| "IAG is not immune from the pricing pressures of industry capacity expansion, but structurally it is better protected," Jefferies said in a note to clients. | "IAG is not immune from the pricing pressures of industry capacity expansion, but structurally it is better protected," Jefferies said in a note to clients. |