IAG reduces losses during Q1

Dino D'Amore
By Dino D'Amore May 12, 2014 15:37

IAG reduces losses during Q1

During the three months to March 31, 2014, International Consolidated Airlines Group (IAG) reported a first quarter operating loss of €150 million, reducing the operating loss of €278 million reported in 2013. Revenue for the quarter was up by 6.7% to €4,203 million, up 7.6% at constant currency. Non-fuel costs up 3.8%, up 4.8% at constant currency

At constant currency, first quarter passenger unit revenue down 1.4% (excluding Vueling which was down 0.5%) and non-fuel unit costs dropped by 6.2% (excluding Vueling down 4.2%). Fuel unit costs for the quarter were down 8.9%, 7.4% at constant currency.

“We’re pleased that our quarterly operating loss has reduced significantly from €278 million last year to €150 million, especially as Vueling’s quarterly losses were not included last year as they weren’t in the Group,” said Willie Walsh, IAG Chief Executive Officer. “Iberia has almost halved its losses from quarter one last year with an operating loss of €111 million compared to €202 million. The airline continues to benefit from restructuring and these figures don’t reflect the impact of recent pay and productivity agreements which took effect in April. While the restructuring remains work in progress, Iberia is gradually resuming some routes including longhaul services to Santo Domingo and Montevideo.

“British Airways made an operating loss of €5 million in the quarter, compared to a €72 million operating loss in 2013. The airline has increased capacity within a controlled cost environment and benefited from the efficiency of its new Airbus A380 and Boeing 787 aircraft.

“Vueling made an operating loss of €30 million and has managed to keep its losses flat while growing capacity. The airline continues to grow with its main focus in southern Europe”.

IAG stated that it expects to improve operating profit for the 2014 full year by at least €500 million, from a 2013 base of €770 million. Unit revenues should remain relatively flat, with margin expansion driven by a reduction in unit costs.

IAG April traffic up 18%

In April 2014, IAG Group traffic measured in Revenue Passenger Kilometres increased by 18% versus April 2013, which rose by 9.5% on a pro-forma basis. Group capacity measured in Available Seat Kilometres rose by 16.6% (up 7.6% on a pro-forma basis).

Group premium traffic for the month of April increased by 4.0% compared to the previous year.

Dino D'Amore
By Dino D'Amore May 12, 2014 15:37
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