International Airlines Group (IAG) presents Group consolidated results for the year to December 31, 2014

IAG reported strong full year results with an operating profit before exceptional items of €1,390m, up 80.5%. Total revenue was up 8.0% with non-fuel costs up 7.0% and fuel costs up 0.6% on capacity growth of 9.3%. Iberia made an operating profit of €50m compared to an operating loss of €166m last year. British Airways’ operating profit increased to €1,215m up from €762m last year which shows significant progress towards its long term targets. Vueling made an operating profit of €141m, compared to an operating profit of €139m in 2013, with the airline focusing on flexible growth.
The Group achieved a strong unit cost performance, down 4.1%, through increased productivity, supplier cost savings and lower fuel unit costs. The latter was boosted by the introduction of more efficient aircraft into its fleet and lower fuel prices in the last quarter of the year. However, the positive effect of the oil price reduction has been partly offset by hedging and significant currency impact. In the quarter, the Group made an operating profit before exceptional items of €260m which is up from €113m last year. Revenue for the quarter was up 9.9%. Non-fuel costs were up 10.5% and fuel costs decreased by 0.4% on capacity growth of 5.8%.