Profits rise for IAG

Pre-tax profits of €2.49bn, up 5.6% on the figure of €2.36bn recorded the year before, were reported last week by British Airways parent company International Airlines Group (IAG). The group – which as well as BA also controls Iberia, Vueling, and Aer Lingus – said revenue for the year was up 1.8% to €22.97bn. IAG is launching a €500m share-buyback programme and declared a dividend of 14.5 cents a share.

Chief executive Willie Walsh said: “All our airlines performed extremely well with their best-ever individual financial results, strong operational performances and commitment to customer service.”

Details of the individual airlines’ performances were not disclosed but Walsh singled out Vueling for special praise, saying: “The turnaround in Vueling, following the challenges of 2016, has been particularly outstanding.”

For the group as a whole, the chief executive said operating profit was impacted significantly by changes in the employee bonus provision in the quarter compared to the previous year.

Fuel costs before exceptional items were down 7.8% over the year, but fourth-quarter fuel costs before exceptional items were up 1.2%. At current fuel prices and exchange rates, IAG expects its 2018 operating profit to increase year-on-year, the company said.

www.iairgroup.com

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