26th Feb 2016 09:32
LONDON (Alliance News) - International Consolidated Airlines Group on Friday reported a more than doubling in profit in 2015, as revenue grew despite taking a small hit to sales in the fourth quarter following the terrorist attacks in Paris.
The airline operator - which owns British Airways, Aer Lingus, and Spanish carriers Iberia and Vueling - said its pretax profit in 2015 grew to EUR1.82 billion from EUR828 million in 2014, as revenue rose by 13% to EUR22.86 billion from EUR20.17 billion.
Operating profit in 2015 increased to EUR2.32 billion from EUR1.03 billion, which IAG said benefited from a EUR35 million contribution from Irish airline Aer Lingus, which joined the group last August. Operating profit excluding Aer Lingus and exceptional items, increased 65% to EUR1.39 billion.
Passenger unit revenue in the fourth quarter rose 3.1%, also benefiting from Aer Lingus as well as favourable movements in exchange rates which offset a 1 percentage point hit from the effects of the terrorist attacks in Paris in November.
Excluding Aer Lingus and on a constant currency basis, fourth quarter passenger unit revenue would have fallen 3.7%.
In the full year, passenger revenue rose 14% year-on-year to EUR20.35 billion.
IAG said the air traffic industry performed well in 2015, benefiting from lower fuel unit costs and reasonable demand growth, despite some softening in the global economic environment. Overall, North America and Europe were the strongest markets, while Africa suffered from lower fuel prices and Latin America was hit by weaker currencies in Brazil and Argentina.
Total passenger load factor was 79.7% for the year, 0.5 percentage point higher than 2014.
By airline, total revenue at British Airways fell by 1%, but grew by 10% at Aer Lingus, 12% at Iberia and 14% at Vueling.
IAG said it will pay a total dividend of 20 cents for the full year, including a 10 cent final dividend.
IAG added that it expects to generate an absolute operating profit increase in 2016 which is similar to that achieved in 2015. Revenue trends in the first quarter of 2016 appear broadly in line with those experienced in the fourth quarter of 2015, it added.
Despite the strong results, shares in IAG were trading down 1.6% at 549.56 pence on Friday morning.
Davy Research said the IAG results were at the top end of guidance. Cantor Fitzgerald Europe Research said IAG's earnings represented a small beat, with its 2016 guidance slightly ahead of consensus.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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