Profits soar at BA-parent
British Airways’ parent IAG saw profits shoot up 65% last year.
Excluding Aer Lingus, which is acquired in 2015, the airline group made an operating profit of €2.3 billion for the year to December 31, compared with €1.39 billion in 2014.
IAG, which includes Iberia and low-cost carrier Vueling, benefited from a 17.2% drop in its fuel bill, while other costs were down 3.9%.
However, passenger unit revenue was down 3.5%, one percentage point of which was blamed on the Paris terror attacks.
Aer Lingus has contributed €35 million to IAG’s operating profit since it joined the Group in August last year.
IAG chief executive Willie Walsh described the full year results as ‘very strong’.
"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," he said.
"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 2016, IAG expects to generate an absolute operating profit increase similar to 2015.
It said revenue trends in the first quarter appear ‘broadly in line’ with those experienced in the fourth quarter of 2015, when it made an operating profit of €540 million, excluding Aer Lingus. With Aer Lingus, it made €530 million.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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