IAG Group July Traffic Rises 7.1%

(RTTNews) - International Consolidated Airlines Group, S.A. (ICAGY, IAG.L), formed by the merger of British Airways plc and Spanish flag carrier Iberia Lineas Aereas de Espana S.A., reported Tuesday a 7.1 percent increase in traffic for the month of July, boosted by Vueling Airlines' operations and a 7.6 percent increase in premium traffic. Capacity also grew 9.2 percent, but passenger load factor declined 1.7 percentage points.

The Group performance comprised British Airways, Iberia (including Iberia Express) and Spanish discount carrier Vueling Airlines, S.A, of which IAG owns 90.51 percent after it acquired a 44.66 percent stake in April 2013 and consolidated it with Iberia's already existing 45.85 percent stake in Vueling.

International Consolidated Airlines said that group traffic, measured in revenue passenger kilometres, was 19.40 billion in July, up 7.1 percent from 18.12 billion in the same period last year. Traffic for the month comprised a 7.6 percent increase in premium traffic.

The traffic growth was primarily attributable to a 11.5 percent growth in the Asia Pacific region as well as a 10.4 percent growth in the European region. Traffic also grew 7.6 percent in the domestic region of U.K., Spain and Italy.

British Airways traffic grew 5.4 percent to 12.70 billion RPKs, and Iberia airline traffic increased 3.6 percent to 4.14 billion RPKs from last year. Vueling traffic was up 23.5 percent to 2.57 billion RPKs.

Total capacity, measured in available seat kilometres, grew 9.2 percent to 23.49 billion from 21.51 billion in the prior-year period, led by a 14.0 percent growth in the European region and an 11.7 percent increase in both the domestic region of U.K., Spain and Italy as well as the Asia Pacific region. North American capacity was also up 8.2 percent.

British Airways capacity improved 7.3 percent to 15.12 billion ASKs, and Iberia airline capacity grew 4.8 percent to 5.12 billion ASKs from a year ago. Vueling capacity was up 28.5 percent to 3.23 billion ASKs.

The airline's total passenger load factor - proportion of available seats filled against the capacity - was down 1.7 percentage points to 82.6 percent from last year's 84.3 percent.

Total passengers carried by IAG during the month increased 8.2 percent to 7.84 million from 7.25 million in July 2013, due primarily to a 11.5 percent rise in the Asia Pacific region and a 10.4 percent growth in the European region. The domestic region of U.K., Spain and Italy was also up 7.6 percent.

For the month of July, cargo Tonne Kilometers decreased 3.0 percent to 454 million, with British Airways declining 4.9 percent, while Iberia airline increased 6.5 percent.

In Wednesday's regular trading, ICAGY is currently trading at $27.83, down $0.72 or 2.52% on a volume of 122 shares. IAG.L is trading on the London stock exchange at 318.40 pence, down 8.60 pence or 2.63% on a volume of 9.52 million shares.