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Revenue tops €24bn at IAG as Aer Lingus delivers record performance


(Stock image)
(Stock image)

Revenue at Aer Lingus owner IAG increased 6.7pc to €24.4bn in 2018.

Operating profit before exceptional items increased 9.5pc to €3.2bn, according to annual results from the group.

Last year IAG increased capacity by 6.1pc. The increase partially reflects new long haul routes at British Airways, Iberia and Aer Lingus, and the full year impact of routes launched in 2017.

In its short haul division, new routes were launched by Level in Vienna, and frequencies in domestic and European routes were added by Iberia and Vueling.

Looking at Aer Lingus specifically, and operating profit was €305m, a record performance and an improvement of €37m over 2017.

Capacity at Aer Lingus increased 10pc from additional flying to new routes such as Philadelphia and Seattle.

Aer Lingus’ adjusted operating margin rose 0.6 points to 16.8pc. Passenger unit revenues decreased from lower yields, while non-fuel unit costs improved.

The airline also achieved significant cost savings, the group added.

Willie Walsh, IAG chief executive, said: “This was a very good performance despite three significant challenges: fuel prices increasing 30pc, considerable air traffic control disruption and an adverse foreign exchange impact of €129m.”

“At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items and impacts of IFRS16 to be in line with €3.2bn reported in 2018,” Mr Walsh added.

“Passenger unit revenue is expected to improve at constant currency and non-fuel unit cost is expected to be flat at constant currency.”

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Separately and IAG is ordering 18 Boeing 777-9 aircraft for British Airways. They will be used to replace 14 Boeing 747-400 and four Boeing 777-200 between 2022 and 2025.

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