Published On: Fri, Feb 26th, 2016

International Consolidated Airlines (IAG) Reports Operating Profit Up 68%

British Airways

British Airways, Iberia, Vueling and Aer Lingus are owned by IAG.

International Consolidated Airlines Group (LON:IAG), the Spanish-British multinational airline company responsible for carriers such as British Airways, Iberia and newly acquired Aer Lingus released its results for the year to December 31, 2015 on Friday morning.

Highlights from the results include operating profit for the year reaching €2.3 billion excluding Aer Lingus, a 68% improvement, well ahead of its 1.5 billion target which was set for 2015 back in 2011.

Revenue for the year rose by 13.3 per cent to €22,858 million whilst passenger unit revenue for the year fell by 3.5 percent on a constant currency basis.

Willie Walsh, IAG Chief Executive Officer, said:

“We’re reporting very strong full year results with an operating profit before exceptional items of €2,335 million including Aer Lingus. At constant currency, passenger unit revenue was down 3.5 per cent with non-fuel unit costs down 3.9 per cent and fuel unit costs down 17.2 per cent.

“Aer Lingus has made a positive contribution of €35 million operating profit since it joined the Group on 18 August last year.

“These results are in line with our recent target and have exceeded our original 2015 operating profit target of €1.5 billion that we set in 2011. It’s undoubtedly been a good year but it’s also been challenging with extreme volatility in the currency and fuel markets. The benefits gained from lower fuel prices have been partially offset by the stronger US dollar.

“In the quarter, we made an operating profit before exceptional items of €530 million including Aer Lingus.”

The board said it was pleased to confirm a proposed final dividend of 10 euro cents per share, bringing the full year dividend to 20 euro cents subject to shareholder approval at the next annual general meeting.

Looking forward IAG said it expects to generate an absolute profit increase similar to 2015 in 2016 as revenue trends appear in line with those experienced in the fourth quarter of 2015.

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