International Consolidated Airlines Group (IAG) has reported an operating profit for the year to December 31, 2015 of €2.3bn excluding Aer Lingus and before exceptional items compared to €1.39bn in 2014, an increase of 65%. Including Aer Lingus, IAG’s operating profit for 2015 was €2.335bn. Revenue for the year was up 13.3% to €22.858bn and passenger unit revenue for the year was down 3.5% at constant currency.
Fuel unit costs for the year before exceptional items were down 6.3%, down 17.2% at constant currency, while non-fuel unit costs for the year before exceptional items were up 4.3%, down 3.9% at constant currency.
IAG’s fourth quarter operating profit was €540 million excluding Aer Lingus and before exceptional items compared to €260 million in 2015; including Aer Lingus profit was €530 million.
Passenger unit revenue for the quarter was up 3.1%. Excluding Aer Lingus and at constant currency it was down 3.7% including approximately 1 point adverse impact from the Paris attacks.
Non-fuel unit costs before exceptional items for the quarter were up 2.4%. Excluding Aer Lingus and at constant currency they were down 3.9%. Fuel unit costs before exceptional items for the quarter were down 13.4%, down 23.9% at constant currency
“We’re reporting very strong full year results with an operating profit before exceptional items of €2,335 million including Aer Lingus,” said Willie Walsh, IAG Chief Executive Officer. “Aer Lingus has made a positive contribution of €35 million operating profit since it joined the Group on 18 August last year.”
“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. 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 IAG board has also proposed a final dividend to shareholders of 10 euro cents per share, which brings the full year dividend to 20 euro cents, subject to shareholder approval at the airline group’s AGM in June.
In 2016, IAG expects to generate an absolute operating profit increase similar to 2015. Revenue trends in Q1 2016 appear broadly in line with those experienced in Q4 2015, IAG stated.