British Airways owner posts record £1.1billion profits amid holiday revival and higher air fares

THE owner of British Airways has posted record half-year profits on the back of a holiday revival and higher air fares.

IAG enjoyed operating profits of £1.1billion for the first half of 2023, compared with a loss of £382million last year.

It also revealed fares were 9.5 per cent more expensive than a year ago as it passed on its own higher costs to passengers.

It is a boost after two years of pandemic travel restrictions and chaos last year caused by staff shortages at Heathrow.

BA had to cancel thousands of flights last August during the peak summer holiday period, causing misery to travellers. BA boss Sean Doyle said the industry was in a much better position and it had hired an extra 4,000 people so far this year.

Mr Doyle added holidaymakers had not been put off by the extreme hot weather across Europe and fires in Greece and Corfu.

He said: “Traditional markets of southern Europe are very, very strong this year and actually they continue to book strongly.”

IAG said despite nervousness around rising bills it has not seen “any sign of a slowdown in demand” in leisure or business travel.

Boss Luis Gallego said: “Customer demand remains strong across the group, particularly for leisure travel, with around 80 per cent of passenger revenue for the third quarter.”

More go bust

THE number of firms going bust has soared to the highest level since 2009 — when the economy was reeling from the financial crisis.

Insolvencies in the past three months hit 6,342 — 13 per cent more than last year, figures show.

 Many firms are grappling with debts built up in the pandemic.

Right profits

RIGHTMOVE has shrugged off mortgage market woes with its highest sales since 2018.

The online property site’s pre-tax profits rose by 8 per cent to £130.3million in the first half of the year — and sales hit £179.5million.

More of its customers are opting for its pricier premium packages.

Good week

MICHAEL Murray, boss of Frasers Group, who reported bumper profits this week as the retailer’s push upmarket pays off.

Bad week

DAME Alison Rose, the ex-Natwest boss forced out this week over Nigel Farage’s Coutts debanking.