IAG reports euro 1.5b profit during 2015

IAG, British International Consolidated Airlines Group has reported a profit of 1.5 billion euros with cargo revenues increasing with a 125% rise in full year operating following a bumper of strong demand and low fuel costings.

IAG reports euro 1.5b profit during 2015

IAG, British International Consolidated Airlines Group has reported a profit of 1.5 billion euros with cargo revenues increasing with a 125% rise in full year operating following a bumper of strong demand and low fuel costings.

IAG created in 2011 after the merger of BA and Iberia stted the revenues went up during 2015 with 13.3% up to a level of euro 22.8bn, mainly backed by higher passenger revenues of euro 20.3bn.

During the fourth quarter, cargo revenue increased by 4.9% from 268 million euros to 281 million euros while tonnage remained at 236,000 tonnes. IAG stated that cargo has been challenging, with capacity has exceeded demand, but it will continue to focus on strategic partnerships including its share agreement with Qatar Airways and Finnair Cargo.

IAG reports profits in 2015 despite challenging market conditions 1

Willie Walsh, IAG chief executive officer said the results were in line with the recent target and had exceeded the original 2015 operating profit target of 1.5 billion euros that was set in 2011.

He continued by stating : “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.”

The good results come at the time IAG officially announced the nomination of Javier Sanchez Prieto as new CEO of IAG’s low cost branding Vuelling, replacing Alex Curz who will become the head of British Airways.