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IAG profits surge on fuel price drop

British Airways’ parent company IAG has announced a sharp rise in profits, helped by low fuel prices.

In its annual financial statement IAG reported a 64 per cent rise in yearly pre-tax profits to €1.8 billion with fuel prices dropping 6.3 per cent.

The company expects profits in 2016 to match last year’s citing further fuel savings and better operational performance.

IAG said profits would have been higher but for “extreme volatility” in the currency and fuel markets.

“The benefits gained from lower fuel prices have been partially offset by the stronger US dollar,” IAG CEO Willie Walsh said.

Total revenues for the year to December 31 rose 13.3 per cent to €22.8 billion, fuelled by higher passenger revenue of €20.4 billion.

It also confirmed it would make the first dividend payment in its four-year history.

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