2/24/2017 | 05:11am EST
British Airways owner IAG reported an 8.6 percent rise in annual operating profit in line with expectations on Friday and said it would increase cash returns to shareholders through a stock buyback.
Operating profit before exceptional items rose to 2.5 billion euros (2 billion pounds) despite a 1.3 percent fall in revenue to 22.57 billion.
The company was hit by an adverse currency impact of 460 million euros after a slump in the British pound following Britain's June 23 vote to leave the European Union.
"For the full year, it was a good performance in a challenging environment," said IAG CEO Willie Walsh.
IAG said it expected higher operating profit for 2017.
The airline group, which also owns Spain's Iberia, said it planned to carry out a share buyback of 500 million euros this year.
(Reporting by Alistair Smout; editing by Paul Sandle and Jason Neely)