IAG reports strong result despite higher fuel prices. But Iberia Express fills the windscreen

International Consolidated Airlines Group (IAG) reported a strong FY2011 result with profit more than doubling year-on-year despite its fuel expense increasing nearly 30%. British Airways led the strong result while Iberia still struggled. The 2012 outlook for the Group remains uncertain due to weak European markets and labour unrest in addition to rising fuel expenses.

IAG reported full year operating profit of EUR485 million and net profit of EUR527 million. Fuel expenses rose 29.7% to EUR5.1 billion. Passenger revenue outgrew capacity increases with 11% higher revenue and capacity increase of 7.1%. Unit passenger revenue rose 3.6% with overall unit revenue up 3.1% while premium traffic saw good growth of 5.7% and outgrew non-premium revenue growth. Despite increases on the passenger side of the business, cargo revenue remained constant.