IAG has reported full year performance with an operating profit of €3,015m before exceptional items, up 18.9% compared to last year. Passenger unit revenue improved 1.5% at constant currency and the Group benefited from reduced fuel costs for most of 2017 though the fuel bill started to rise in the fourth-quarter.
In the fourth-quarter the Group reported an operating profit of €585m, down from €620m last year. Passenger unit revenue was up 2.4% at constant currency. The operating profit was impacted significantly by changes in the employee bonus provision in the quarter compared to the previous year.
The Group announced its intention to undertake a share buyback of €500m during 2018. Trading outlook at current fuel prices and exchange rates, IAG expects its operating profit for 2018 to show an increase year-on-year. Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currency.
