August 5, 2020

The profit of Iberia's parent company soars 44%, to 2,897 million | Economy

The airline group IAG, which includes Iberia, British Airways (BA), Vueling and Aer Lingus, recorded a net profit of 2,897 million euros in 2018, representing an increase of 44.2% over a year earlier, as reported by the company on Thursday to the National Securities Market Commission (CNMV).

The profit from IAG operations before exceptional items stood at 3,230 million euros in 2018, representing an increase of 9.5%. The group's total revenues increased by 6.7% to 24,406 million euros, while the unit revenue of passengers increased by 6.2%.

"We have achieved these fantastic results despite three major challenges: the 30% increase in fuel prices, the significant incidences suffered due to air traffic control and an adverse effect on the exchange rates of 129 million euros" , has underlined Willie Walsh, CEO of IAG.

On Brexit, Walsh added that they are confident that there is a comprehensive air transport agreement between Britain and the European Union. The parent company of Iberia announced on Wednesday that it plans to propose to the general meeting of shareholders an extraordinary dividend of 700 million, ratio of 35 cents per title, according to a relevant fact referred by the group to the CNMV.

In addition, the company has sent another relevant fact in which it reports that it has placed an order for 18 Boeing 777-9 aircraft, in addition to 24 options, for the British Airways fleet. They will replace between 2022 and 2025 to 14 Boeing 747-400 and 4 Boeing 777-200. It is an order for large aircraft, with 325 seats in four cabins, for long-haul flights. Willie Walsh emphasizes in the note that the 777-9 is "the most efficient long-haul plane in the world in terms of fuel consumption (with improvements of 30% in the unit cost of fuel compared to the Boeing 747) and will provide many benefits to the British Airways fleet ". Within it, BA has 135 long-haul aircraft.


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