IAG's first quarter net income down 74%

International Airlines Group (IAG) presented Group consolidated results for the three months to March 31, 2017. The Group’s operating profit for the period was €170m, an increase of €15m versus last year, or €47 million at ccy. In 2017, the Group recognised an exceptional charge of €1m related to the continuation of British Airways transformation initiatives. In 2016, the exceptional charge reflects the impact of recording Aer Lingus fuel cost at the hedged price in the pre-exceptional column, rather than at spot price in the reported column. Net non-operating costs were €116m for the quarter compared to €44m in 2016. The increase was from higher unrealised losses on the remeasurement of derivatives not qualifying for hedge accounting and unrealised net currency retranslation charges, partially offset by a €17m reduction in net financing costs. The profit after tax and exceptional items for the quarter was €27m (2016: €104m), a reduction of €77m in the period.