International Airlines Group (IAG) announced on May 10, 2019, that its profit after tax before exceptional items fell down to €70 million during the first quarter of 2019, a 62.6% decrease.

The parent company of, among others, British Airways and Iberia had recorded a net profit of €794 million in the first quarter of 2018. It sees in this decline the higher price of kerosene and an unfavorable market in Europe.

Along with fuel, IAG also feels the effect of a difficult market for air travel in Europe, including an excessive capacity for demand.

The group carried 24.4 million passengers in the first quarter, up 6.2% year-on-year.

“In a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of €135 million,“ said Willie Walsh, IAG Chief Executive Officer.

At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be in line with 2018 pro forma. Passenger unit revenue is expected to be flat at constant currency and non-fuel unit cost is expected to improve at constant currency.