Ggood morning.
British Airways owner has returned to profit, even as delays and cancellations wreaked havoc for British holidaymakers.
IAG posted an operating profit of €293 million (£245 million) in the three months to the end of June, up from a loss of almost €1 billion in the same period last year and ahead of expectations.
The group has benefited from a rebound in demand after the pandemic, as well as higher ticket prices. But it has also canceled flights for thousands of passengers, who have often faced lengthy delays at airports due to understaffing.
IAG said a cap on passenger numbers at Heathrow would limit capacity to 80 percent of pre-Covid levels in the summer and 85 percent in the fourth quarter – a 5 percent reduction from previous expectations.
5 things to start your day with
1) Defense companies revived by war in Ukraine BAE Systems expects a flood of new orders from countries preparing for the return of industrial war
2) Chinese fleet of ‘dark’ oil tankers takes Russian crude oil to sea Ships reportedly turn off their tracking signals to transfer Russian oil in the mid-Atlantic
3) Amazon warns of hiring delay after second consecutive loss Jeff Bezos’ fortune rises by $14 billion as stocks rise
4) No new homes in West London as the electricity grid fills up Home builders have been told it could take until 2035 for new developments to be connected to the grid
5) Lord Cruddas’ wealth falls by £100m as CMC crashes 20 percent The company says a weak pound and unfavorable exchange rates are to blame
What happened overnight?
Asian stocks were inspired by a late rally on Wall Street as markets focused on a possible slowdown in the pace of rate hikes rather than a recession in the US after data showed the economy is contracting for the second consecutive quarter .
MSCI’s broadest index of Asia-Pacific stocks outside of Japan rose 0.4 percent. Japan’s Nikkei stock average opened 0.4pct, while the Seoul Index and Australian Index opened 0.75pc and 0.76pc, respectively.
China did not mention its full-year GDP growth target after a high-level Communist Party meeting, saying instead that it will do everything it can to get the best possible results for the economy this year.
coming today
- For Business: AstraZeneca, Croda International, IMI, IAG, Intertek, Jupiter Fund Management, Morgan Advanced Materials, NatWest, Rightmove, Standard Chartered (interim); Glencore (trading update)
- Economy: GDP (EU), Inflation (EU), Personal Consumer Spending (US), Chicago PMI (US), Michigan Consumer Confidence (US), Nationwide House Price Index (UK)