It described its financial results as a “very good outcome” and was achieved in spite of three significant challenges: fuel prices increasing 30%, considerable Air Traffic Control disruption and an adverse foreign exchange impact.
IAG expects fuel prices and exchange rates to further impact the business in 2019.
“In 2018, we’re reporting an operating profit of 3,230 million before exceptional items, up 9.5 per cent compared to last year,” says the group’s Chief Executive, Willie Walsh.
“Yet again, we’ve improved our operating profit this year and our adjusted earnings per share grew by 15.1 per cent.”
In a separate announcement, IAG confirmed an order for 18 Boeing 777-9 aircraft – plus 24 options – for British Airways.
They will replace 14 B747-400s and four B777-200s between 2022 and 2025. Each aircraft will be fitted with 325 seats in four cabins.
“The new B777-9 is the world’s most fuel-efficient long-haul aircraft and will bring many benefits to British Airways’ fleet,” says Walsh.
“It’s the ideal replacement for the Boeing 747 and its size and range will be an excellent fit for the airline’s existing network.”