INTERNATIONAL AIRLINES GROUP Q4 RESULTS – €71M HIT DUE TO WEATHER AND STRIKES

Dino D'Amore
By Dino D'Amore February 28, 2011 09:53

INTERNATIONAL AIRLINES GROUP Q4 RESULTS – €71M HIT DUE TO WEATHER AND STRIKES

IAG, which during the quarter to 31st December 2010 existed as Iberia and British Airways, has reported an Operating profit for the quarter of €6 million, a great improvement on the €114 million operating loss in the same period last year. BA’s EBIT for the quarter was €44 million while IB posted a €46 million operating loss. pro-forma net profit of €90 million in the quarter to 31stDecember 2010 from a €130 million loss the year before. Revenue for the quarter was up 13.4% on last year to €3.81 billion. Passenger revenue was up 15.6% on last year to €3.3 billion on the back of 2.7% growth in ASKs and a 12.7% rise in RASK to €0.063. Passenger yield was 13.1% up on last year at €0.0809. Cargo revenue was up 28.2% on a 3.2% increase in FTKs and a 24.2% rise in yield to €0.19.

Operating costs for the quarter were up 9.5% to €3.8 billion due to €119 million in non-recurring items. The snow in the UK and ATC strikes in Spain cost the airline a huge €71 million, after this there were merger costs of €26 million and €19 million in impairment costs relating to the scrapping of two Boeing 747s. In addition, there was a €43 million bonus provision.

Pro-forma full-year net profit for the two airlines was €100 million, compared to a €777 million loss in 2009. Operating profit was €225 million, from an operating loss of €910 million. Passenger yield improved 13.9% to €0.0793. CASK rose 5% to €0.0731 with fuel cost per ASK rising just 0.5% to €0.0196. Revenue was up 10% to €14.8 billion ASKs and operating costs rose just 1.4% to €14.6 billion. ASKs were reduced by 3.4% while RASK was up 13.9% to €0.0618.

CEO Willie Walsh said IAG airlines will “adjust and even reduce capacity” if demand falls.

Dino D'Amore
By Dino D'Amore February 28, 2011 09:53
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