IAG expects profits boost
International Airlines Group (IAG) has forecast a big jump in profits this year as it benefits from the “remarkable” turnaround of Spanish carrier Iberia.
It comes as IAG chief Willie Walsh says he will respond to the Government’s request for further guarantees about the future of Aer Lingus in "due course".
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Earlier this week, Transport Minister Paschal Donohoe said the €1.4bn bid doesn't go far enough - with the future of Heathrow landing slots the main obstacle.
Willie Walsh says IAG will respond to the Government, and says Aer Lingus would have a brighter future as part of his group.
IAG, which was formed from the merger of Iberia and British Airways in 2011, posted operating profits of €1.39bn for 2014 after it returned Iberia to the black following many years of losses.
With lower oil prices also helping the performance, the operating profit of British Airways increased to €1.21bn after it boosted capacity with the delivery of five additional Airbus A380s and four Boeing 787s.
The company said it expects further improvement from the two airlines this year, with group operating profits set to exceed €2.2bn.
Fuel costs and emission charges fell by 6% to just under €6bn last year and are expected to remain at a similar level in 2015.
Chief executive Willie Walsh praised the improvement at Iberia, which made an operating profit of €50m last year compared to an operating loss of €166m the previous year.
He said: “The airline’s turnaround has been remarkable, both financially and operationally, and we’re very proud of its achievement especially its strong cost discipline.
“In 2013 we said our intention was for Iberia to break even in 2014 and it has fulfilled that promise.”
Iberia’s restructuring saw 2,500 staff leave the airline under a voluntary redundancy programme, while salaries were reduced by between 11% and 18%. The group employs a total of 60,000 people, including at Spain’s low-cost carrier Veuling.
