IAG sees profits surge in 2011

British Airways and Iberia owner International Consolidated Airlines Group (IAG) reported a five-fold increase in pre-tax profit in the year ended December 31st.

Pre-tax profit surged 499% from €84m to €503m, on revenues that grew 10.4% from €14,798 to €16,339m, despite a €317m adverse currency impact.

The performance was boosted by net cost and revenue synergies worth €74m, €64m more than its target, in the first year since the merger.

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Fuel costs were up 29.7% on the year at €5,068m.

No dividend was paid.

Note: the figures are based on the combined results for BA, Iberia and IAG the company for the full-year to December 31st 2011 and 2010, and include the 21 days pre-merger at the start of January 2011.

BC