- British-Airways owner International Consolidated Airlines reported flat annual profit growth as disruptions and higher fuel prices weighed.

The company also warned the coronavirus would weaken capacity in 2020 amid lower demand for Asian and European routes. With flights to Mainland China suspended and reduced capacity on Italian routes, IAG said it expected cancellations to lower available seat kilometres -- the industry measure of passenger capacity –- by 1%.

For 2019, pre-tax profit fell 0.6% to €2.3bn on-year, while revenue climbed 5.1% to €25.5bn. 'These are good results in a year affected by disruption and higher fuel prices,' the company said. Passenger unit revenue for the quarter was up 2.2% while fuel unit costs grew 5.6%

The company proposed a final dividend of 17.0 euro cents per share, taking the full year dividend to 31.5 euro cents per share.

'The earnings outlook is adversely affected by weaker demand as a result of coronavirus (COVID-19). We are currently experiencing demand weakness on Asian and European routes and a weakening of business travel across our network resulting from the cancellation of industry events and corporate travel restrictions,' IAG said.

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