Aer Lingus parent IAG on Friday reported better-than-expected second-quarter profit on strong demand for its transatlantic routes despite concerns about the fallout from US President Donald Trump's tariff war.
European carriers have largely avoided tariff worries, with Air France-KLM and Lufthansa posting strong second-quarter results and reaffirming their full-year forecasts this week.
IAG reported operating profit of 1.68 billion euros for the quarter, up 35 percent from 1.2 billion euros in the same period last year.
Aer Lingus reported an operating profit of €135 million for the quarter, up significantly from the €91 million it made in the same period last year.
“We continue to benefit from structural changes in consumer spending towards travel. We remain focused on our core brands and core regions where we deliver strong performance,” said CEO Luis Gallego.
The conglomerate reiterated its full-year financial guidance and reported strong demand in its core markets in the North Atlantic, as well as Latin America and Europe.
The carrier said it expected a slight increase in costs due to a slowdown in capacity growth linked to air traffic control issues in Europe and the cancellation of flights to destinations such as Tel Aviv.
While Gallego acknowledged the instability of the U.S. economy, he added that any weaknesses are offset by strength in other business segments.
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“The situation in economy class in the US remains weak, but this is offset by strong demand in premium class… but there has been an improvement in the last few weeks,” Gallego told reporters at a news conference.
U.S. airlines are performing worse, with Delta revising its full-year forecast this spring amid concerns about slowing demand.
Gallego added that growth in the Latin American market continues to drive business improvements.
IAG shares have been among the best performers among European airlines in recent years, but have lagged behind rivals Lufthansa and Air France-KLM this year as they have recovered from cost pressures.
Sourse: breakingnews.ie
