The air group IAG (International Airlines Group), formed by the airlines British Airways, Iberia, Iberia Express, Aer Lingus and Vueling has presented a report showing economic results during the year 2016.
IAG group last year obtained a net profit of EUR 559.221 million, a growth of 35% compared to 2015, i.e. 117.288 million more. In his speech to shareholders, Antonio Vázquez, President of IAG, said, among other things, that “while our short-term results were particularly affected by the British referendum on the European Union and the consequent devaluation of the pound sterling, we were able to generate an operating profit of 2.535 million euros, with a revenue of 22.567 million euros”
Saving measures include the aircraft continued descent technique, already used by 90% of the landings of British Airways and Aer Lingus, “In 2016, the training of crews of Iberia continued descent operations resulted in an improvement of 22 percent and Vueling had a 15 per cent improvement in noise impact”, said Vázquez.
Last year, IAG presented benefits of operations of 2.500 million euros before exceptional items, compared with 2.300 million euros the previous year. It is, according to the authorities, a solid result, but below forecasts due to an adverse exchange rate of 480 million euros caused by the fall in the value of the Pound Sterling and of the United Kingdom-European Union output.
Willie Walsh, Chief Executive Officer of the society announced that the airline will continue with an investment plan of 400 million pounds, including new facilities of first class passengers at Heathrow’s terminal 5, and improvements in VIP lounges in key markets.
Iberia won 289.378 million euros in 2016 and its initiatives are focused to the restructuring of the business and reduce costs.” There has been some weakness in some of the major Latin American markets of Iberia, especially in Brazil, but this has been counteracted by the entry of the company in Asia with new routes to Shanghai and Tokyo.” The subsidiary Iberia Express won 22.5 million euros in 2016, twice as the 10,49 million earned by 2015.
Vueling earned 84.117 million in a complex year in operational terms for the airline, and its biggest disruption came from a series of strikes called initiated by French air traffic controllers. The airline, according to Walsh, is currently strengthening its foundations, strengthening the Organization and making its network more resilient.