International Airlines Group (IAG), the holding company for British Airways and Iberia, reported a quarterly pre-tax profit of EUR21 million for the three months ended December 31.

IAG said that compared with a loss of EUR208 million for the same period of 2009 on a pro-forma basis. The British and Spanish airlines merged their fleets and operations in January 2011.

The international air carrier said revenue for the quarter rose 13.4 percent to EUR3,8 billion, but IAG chief executive Willie Walsh cautioned that the company was closely monitoring the current political instability in the Middle East and its impact on jet fuel prices.

Walsh also underlined that IAG's results were impacted by severe winter storms in the UK which interrupted air traffic at Heathrow airport in London, and a Spanish air traffic controllers strike which disrupted the airlines' operations and reduced revenue by EUR71 million.

IAG also had to absorb a number of non-recurring costs totalling EUR119 million, including provision for restructuring costs, impairment charges tied to the decision to scrap two British Airways 747 jets and merger completion costs. 

Author: Justin Cole, analyst.