IAG profit soars as Iberia gets back to black
British Airways parent IAG has reported an 80% jump in annual profit.
The group, which also owns Iberia and Vueling and is trying to buy Aer Lingus, made an operating profit of just under €1.4 billion compared to €770 million in 2013.
CEO Willie Walsh said total revenue was up 8% with non-fuel costs up 7% and fuel costs up 0.6% on capacity growth of 9.3%.
"Iberia made an operating profit of €50 million compared to an operating loss of €166 million last year. The airline’s turnaround has been remarkable, both financially and operationally, and we’re very proud of its achievement especially its strong cost discipline," he said.
"In 2013 we said our intention was for Iberia to breakeven in 2014 and it has fulfilled that promise."
Meanwhile, BA’s operating profit increased to €1,215 million from €762 million last year.
Vueling made an operating profit of €141 million, compared to an operating profit of €139 million in 2013.
"We achieved a strong unit cost performance, down 4.1%, through increased productivity, supplier cost savings and lower fuel unit costs.
"The latter was boosted by the introduction of more efficient aircraft into our fleet and lower fuel prices in the last quarter of the year.
“However, the positive effect of the oil price reduction has been partly offset by hedging and significant currency impact."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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