Airlines IAG generates over 3 million Euro profit in 2017

In the annual report, the group speaks of an operating profit of €3,015 million, which means a plus of 18.9 per cent, compared to 2016. But on balance, the surplus went up by only 3,5 per cent to €2,0 million, because of compensations Iberia and British Airways had to pay over the course of lay-offs.

After tax, the profit amounts €2,243 million, which means an up of 12.7 per cent.

For the quarter, passenger unit revenue rose up 0,4 per cent and 2,4 per cent at constant currency. Non-fuel unit costs rose up 0,5 per cent for the quarter, up 3,2 per cent at constant currency.

The enlarged profit reasons in higher ticket prices. Furthermore, lower costs for fuel conduced to the success, as Willie Walsh, IAG Chief Executive Officer, confirmed: “Passenger unit revenue improved 1.5 per cent at constant currency and we benefitted from reduced fuel costs for most of 2017 though our fuel bill started to rise in quarter 4.”

Regarding the shareholders of the group, Walsh added: “We’re pleased to confirm that the Board is proposing a final dividend of 14.5 euro cents per share. This brings the full year dividend to 27.0 euro cents per share, subject to shareholder approval at our AGM in June. With the dividend and share buyback, we returned more than €1 billion to our shareholders last year.”

In year 2018, IAG expects an increase in profit at current fuel prices and exchange rates. At constant currency, the group predicts improved non-fuel unit costs and passenger unit revenues.

International Airlines Group owns the carriers British Airways, Iberia, Aer Lingus, Vueling and Level.