IAG (BA & Iberia) annual figures

British Airways and Iberia’s parent company, IAG, has reported an increase in annual profits.  The company made a pre-tax profit of £426 in 2011, the figure for the previous year was £70m.

IAG's Chief Executive, Willie Walsh, used this announcement to once again criticise Government policy regarding APD (Airline Passenger Duty).

"The impact of these very high taxes – the highest in the world – is very negative on the UK economy and is destroying jobs," he said.  Mr Walsh noted that BA was cutting recruitment by 500.

The airline also said it had reduced non-fuel costs by 5.6% last year and increased revenue per passenger by 3.6%.

Regarding Iberia strikes by pilots in response to plans to launch Iberia Express, a new low-cost carrier, Mr Walsh said they were costing the company about €2m during each day of industrial unrest. 

Mr Walsh noted British Airways traffic this summer may be impacted by the Olympic games.  While the Olympics will be positive for the long-term position of London as a global destination, past experience in other host cities suggests that demand could be dampened.

IAG will not be paying a dividend. www.iairgroup.com

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