British Airways owner IAG has reported a first quarter profit for the first time ever

Revenue at the group has risen by 12% to €4.7 billion

British Airways owner IAG has reported a first quarter profit for the first time ever, as cost-cutting in its three main airlines starts to pay off.

The airline group said operating profits in the first three months were €25million, compared with a first quarter operating loss of €150 million last year.

The earlier timing of Easter helped the airlines, but the low cost of fuel was largely offset by the cost of the dollar strengthening against the euro.

Revenue at the group has risen by 12% to €4.7 billion.

Willie Walsh said he was hoping his long-haul attempt to buy Aer Lingus would be resolved in the next couple of weeks, as the Irish Government which has a 25% stake in the airline is expected to say whether it will sell to IAG.

“We are being patient and are happy to wait for the Government to satisfy itself that we will not reduce the connectivity between Ireland’s airports and Heathrow,” he said.

The airline chief said that other airlines were keen to join the company that owns British Airways, Iberia and low cost Spanish airline Vueling, but that he was not interested in any other airline.

IAG is on track to make a €2.2 billion profit this year. Low fuel prices will eventually feed through to performance in the fourth quarter of this year, due to the airline’s hedging tactics.