IAG posts strong nine month results

Dino D'Amore
By Dino D'Amore November 8, 2013 12:48

IAG posts strong nine month results

International Consolidated Airlines Group (IAG) has presented its consolidated results for the nine months to September 30, 2013.
IAG third quarter operating profit €690 million (2012: €270 million) before exceptional items. Passenger unit revenue is up 6.7% (excluding Vueling 7.4%) and non-fuel unit costs down 4.3% (excluding Vueling up 0.6%). Operating profit for the nine month period €657 million (2012: €17 million) before exceptional items, while revenue for the nine month period was up 3.9% to €14,113 million.

Passenger unit revenue for the nine month period rose by 2.3% (5.6% at constant currency), with fuel costs for the nine month period down 3.4% to €4,475 million (2012: €4,633 million). Fuel unit costs down 5.4% at constant currency.

“These are strong results with an operating profit in the quarter of €690 million,” said Willie Walsh, IAG chief executive. “The Group’s revenue was up 6.9 per cent and overall costs were down 1.5 per cent. At constant currency, passenger unit revenue was up 6.7 per cent and non-fuel unit costs were down 4.3 per cent.”

“Iberia made an operating profit of €74 million in the quarter compared to an operating profit of €1 million last year. This is an improved performance, bearing in mind it’s the strongest quarter of the year. However, the airline must continue to implement its restructuring plan and reach agreement on productivity changes to bring about long term sustainable profits and growth.”

“British Airways’ operating profit was €477 million, up from €268 million. Its performance continues to benefit from a strong London and transatlantic market as well as a €100 million revenue bounce-back from the Olympic effect last year. In addition, the airline has maintained its focus on cost control.”

“This is the first full quarter that we have shown Vueling’s performance and it made an operating profit of €139 million. Vueling adds value to the Group with its lower costs and successful product strategy. This summer, there was a tourism boost in Barcelona and Vueling was able to capitalise on this seasonal spike due to its leadership position at the airport.”
“In the nine months, the Group made an operating profit of €657 million with passenger unit revenue up 5.6 per cent at constant currency and non-fuel unit costs down 1.1 per cent.”

The Group expects an operating profit for 2013, before exceptional items, of around €740 million. For the full year, Group capacity will grow by 5.2%, representing a reduction of 2.4% excluding Vueling. The group also expects to see a reduction in non-fuel unit costs in 2013, with growth being driven by volume due to new British Airways route launches and the strong growth of Vueling.

Dino D'Amore
By Dino D'Amore November 8, 2013 12:48
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