Tuesday 27 June 2017

IAG profits soar 68pc to €2.3bn as Aer Lingus adds €35m

International Airlines Group (IAG) chief executive Willie Walsh. Photo: PA
International Airlines Group (IAG) chief executive Willie Walsh. Photo: PA
Michael Cogley

Michael Cogley

Profits at International Consolidated Airlines Group (IAG) soared last year to €2.3bn with Aer Lingus adding some €35m to the group's overall profits.

In the company's annual results for 2015, posted this morning, IAG delivered a strong fourth quarter operating profit of €540m excluding Aer Lingus. With Aer Lingus the firm's fourth quarter profit was €530m.

In the final three months of the year passenger unit costs rose 3.1pc. Fuel costs plummeted in the quarter by 13.4pc, down 23.9pc on a constant currency basis.

Revenue for the year for the group rose by 13.3pc up to €22.86bn with passenger unit revenue dropping by 3.5pc on a constant currency basis.

Speaking about the figures, IAG chief executive, Willie Walsh, said the firm reported "very strong full-year results".

“Aer Lingus has made a positive contribution of €35m 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 €1.5bn that we set in 2011," Mr Walsh said.

The IAG chief continued saying that changing markets caused some concern for the firm with some of the benefits of low oil prices being offset by a strong dollar.

"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 €530m including Aer Lingus. We’re pleased to confirm that the Board is proposing a final dividend to shareholders of 10 euro cents per share, which brings the full year dividend to 20 euro cents, subject to shareholder approval at our AGM in June," Mr Walsh said.

Commenting on a Brexit, or UK exit from the European Union, he said it would not have a "material impact" on the business.

But he also said the possibility of a so-called Brexit was causing uncertainty in the market.

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