- British Airways owner IAG said it expected annual operating profit to be flat year-on-year after reporting a rise in profits in the second quarter as an uptick in passenger revenue offset higher fuel costs.

For the three months ended 30 June, statutory pre-tax profits rose to €921m from €770m a year earlier as passenger revenue jumped 8.7% to £6bn.

Fuel unit costs for the quarter up 12.4 per cent, up 6.3 per cent at constant currency

Looking ahead, IAG said it expected its 2019 operating profit before exceptional items to be in line with 2018 pro forma. At current fuel prices and exchange rates.

But passenger unit revenue was expected to be flat at constant currency and non-fuel unit cost is expected to improve at constant currency. 'We expect passenger unit revenue at constant currency to improve for the remainder of the year,' the company said.

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