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IAG profit soars above $A3.3b

Press Association logoPress Association 24/02/2017

The owner of British Airways has taken a STG389 million ($A633 million) Brexit hit following the collapse in the value of the pound, but still managed to report rising profits in 2016.

International Airlines Group (IAG) said weaker sterling saw operating profit suffer after revenue slid 1.3 per cent to STG19.1 billion in the year to December 2016, with Brexit also affecting demand at British Airways.

But the group, which also owns the Aer Lingus and Iberia airlines, said overall operating profit rose 7.2 per cent to STG2.1 billion ($A3.4 billion) in the year.

IAG boss Willie Walsh said: "Our performance was affected by an adverse currency impact of 460 million euros. In particular, this was due to the weak pound following the UK's EU referendum."

Sterling has fallen 16 per cent versus the US dollar since the referendum and 10 per cent against the euro.

In 2016, the firm carried more than 100 million passengers - double the number British Airways and Iberia carried in 2010, when IAG was formed.

Walsh added: "We've made good progress and continue to build on all we've achieved in our first five years."

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