Profits rise 28.8% despite significant currency headwinds
Companies: International Consolidated Airlines Group SA
One of Europe's largest Airline operators International Consolidated Airlines Group reported a 28.8% increase in post-tax profit and announced a share buyback programme on Friday.
In its final results the Airline operator, which owns British Airways, reported total revenue for the year down 1.3% at €22.57bn and passenger unit revenue for the year down 5.4%. Despite the fall in revenue, the firm posted operating profit up 7% at €2.5bn, post-tax profit up 29% at €1.95bn, and earnings up 26% at €0.88.
This was despite the firm facing significant currency headwinds, with the fall in the value of the currency wiping €460m from operating profit.
The Group, which owns and operates British Airways, carried more than 100 million passengers during the year, a figure more than double the number BA and Iberia carried in 2010, a year before IAG was created.
The firm raised its dividend by 17.5% to €0.235, saying it was committed to providing a sustainable dividend for shareholders.
IAG also announced that it intended to carry out a share buyback of €500m during the year, which is likely to be through one or more share buyback programmes:
"We have great confidence in IAG's future prospects and are increasing cash returns to our shareholders."
CEO Willie Walsh the results showed the company had performed well despite the challenging environment:
"In the quarter, we made an operating profit before exceptional items of €620 million, up from a €530 million operating profit last year, with an improvement of our underlying passenger revenue trend...
For the full year, it was a good performance in a challenging environment with an operating profit of €2,535 million before exceptional items, up 8.6 per cent versus last year."
He added that performance had been affected by adverse currency impacts of €460m, primarily due to the weakened pound following the UK's EU referendum.
