International Consolidated Airlines Group SA, or IAG, reported lower profit for the fourth quarter of 2017 as an increase in total operating costs offset revenue gains.
The multinational airline company reported net profit before exceptional items of €468 million for the quarter ended Dec. 31, 2017, down 11.9% from €531 million in the prior-year period.
Total revenue before exceptional items stood at €5.47 billion in the fourth quarter, up 3.2% from €5.30 billion in the same period in 2016, driven mainly by passenger revenue, which rose 4.2% to €4.77 billion from €4.58 billion.
Cargo revenue before exceptional items rose 10.8% to €309 million for the quarter from €279 million, while revenues from other operations came in at €387 million, down 11.4% from €437 million in the same earlier-year period.
Total expenditure on operations before exceptional items increased 4.4% to €4.88 billion for fourth-quarter 2017 from €4.68 billion for fourth-quarter 2016, resulting to €585 million in operating profit, which is down 5.6% from prior-year period's €620 million.
For full-year 2017, the company posted profit after tax of €2.24 billion in 2017, up 12.7% from €1.99 billion in 2016. Total revenue for 2017 was €22.97 billion, up 1.8% from €22.57 billion.
The company said it recognized an exceptional charge of €288 million in 2017 related to restructuring costs.
IAG expects its operating profit to increase year over year for 2018, with both passenger unit revenue and non-fuel unit costs expected to improve at constant currency.
