British Airways owner IAG has reported a slight dip in pre-tax profits by 1.4% to €2.39bn for the 12 months to 31 December 2019, compared with €2.42bn in 2018.
IAG said passenger unit revenue for the year rose 1%, however fuel unit costs jumped 9.6%.
“These are good results in a year affected by disruption and higher fuel prices. We demonstrated our robust and flexible model once again through additional cost control and by reducing capacity growth to reflect market conditions,” said IAG’s chief executive Willie Walsh.
“We’ve increased investment in new aircraft, customer products and operational resilience and this has seen our airlines improve their customer performance scores this year.”
IAG stressed that its earnings outlook has been impacted by “weaker demand as a result of coronavirus”, and that it was not possible for it to say exactly how much the virus will hit 2020 profits.
Its airlines are seeing a weakness in demand on Asian and European routes, as well as reduced business travel across its network, resulting from the cancellation of industry events and corporate travel restrictions.
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