ESYJY Easy Jet PLC (QX)

LONDON—British Airways parent International Consolidated Airlines Group SA reported a 4.7% increase in operating profit in the second quarter though per-passenger revenue slumped sharply after the U.K.'s Brexit vote and terrorism weighed on demand.

Operating profit before exceptional items was €555 million ($615 million) compared with €530 million a year earlier. Excluding last year's acquisition of Aer Lingus the operating profit would have been €487 million in the April through June period, the London-based company said.

Sales in the quarter rose 0.9% to €5.7 billion, though passenger unit revenue fell 10.2%, the group that also owns Spanish carriers Iberia and Vueling said.

European airlines have been battered by a flurry of bad news. Terrorist attacks have spooked passengers, the Brexit vote has dented consumer confidence, and air-traffic control strikes have caused thousands of flights to be canceled.

Deutsche Lufthansa AG last week said full-year profit would be below 2015's level. Air France-KLM SA this week said the benefits from lower fuel costs would be more than wiped out by demand weakness. EasyJet said it had to stimulate demand even in the peak summer season to fill planes.

Shares in IAG fell 30% on the Brexit vote. Immediately after the outcome was confirmed, the airline group said profit growth this year would be lower than anticipated.

British Airway's lucrative premium bookings were weak ahead of the U.K.'s June 23 referendum. The economic uncertainty from the vote's outcome was expected to prolong the softness in demand.

IAG chief executive said "numerous external factors affected our airlines including the impact of terrorism, uncertainty around the U.K.'s EU referendum and Spain's political situation and increased weakness in Latin American economies. This led to a softer than expected trading environment, especially in June. "

Willie Walsh

Write to Robert Wall at robert.wall@wsj.com

(END) Dow Jones Newswires

July 29, 2016 03:15 ET (07:15 GMT)

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