Higher ticket prices and lower fuel costs have given the British Airways parent IAG 2017 more profit
This was announced on Friday in London by the International Airlines Group (IAG) with its subsidiaries British Airways, Iberia, Vueling, Level and Aer Lingus. On the bottom line, however, the profit only increased by 3.5 percent to 2.0 billion euros, as severance pay in the course of a job reduction at Iberia and British Airways as well as other special items weighed on the result.
Shareholders should benefit twice from better-performing businesses. The total dividend for 2017 is expected to increase by 15 percent to 27 cents per share. In addition, IAG intends to repurchase its own shares worth EUR 500 million from the market in the current year. This should usually drive the price of the paper upwards.
In the past year, IAG increased its sales by almost two percent to nearly 23 billion euros. The average revenue in the passenger business had increased currency-adjusted by 1.5 percent, said CEO Willie Walsh. In total, fuel costs fell by more than five percent to 4.6 billion euros. For 2018 Walsh aims for a further increase in operating profit.