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International Airlines Group (IAG) Fundamentals


International Consolidated Airlines Group, S.A., also known as International Airlines Group, is the name of an Anglo-Spanish holding company formed on 8 April 2010 as a result of the proposed merger between British Airways and Iberia.


The new company will be the third largest airline holding company in the world by revenue,with 419 aircraft transporting passengers between 200 destinations.The new company will carry over 62 million passengers per year, according to British Airways executives.Both airlines will, however, continue to operate under their current brand names. British Airways shareholders will take a 55% stake in the new company, while Iberia shareholders will own the remaining 45% stake.

Presumably rising fuel prices won't have an immediate effect?

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Storms over Christmas as airline crews vote to strike

StockMarketWire.com
International Consolidated Airlines Group posts operating profits before exceptional items of €2,535m for the year to the end of December - 8.6% up on last time.

The group's performance was affected by an adverse currency impact of €460 million.

In particular, this was due to the weak pound following the EU referendum.

Revenue for the year fell by 1.3% to €22,567m and passenger unit revenue for the year was down 5.4% at constant currency.

Fuel unit costs for the year before exceptional items was down 26.8%, down 25.8% at constant currency.

Non-fuel unit costs for the year before exceptional items was down 4.1% and up 0.5% at constant currency.

Profit after tax of €1,952m was up 28.8% and diluted earnings per share rose by 25.7%.

The full year dividend of 23.5 cents is up 17.5%.

Chief executive Willie Walsh said: "In the quarter, we made an operating profit before exceptional items of €620 million, up from a €530 million operating profit last year, with an improvement of our underlying passenger revenue trend.

"For the full year, it was a good performance in a challenging environment with an operating profit of €2,535 million before exceptional items, up 8.6 per cent versus last year.

"Our performance was affected by an adverse currency impact of €460 million. In particular, this was due to the weak pound following the UK's EU referendum. However, despite that, we've made good progress and continue to build on all we've achieved in our first five years.

"In 2016, we carried more than 100 million passengers - double the number British Airways and Iberia carried in 2010, a year before IAG was created.

"We're committed to providing a sustainable dividend for our shareholders and are pleased to confirm that the Board is proposing a final dividend of 12.5 euro cents per share.

"This brings the full year dividend to 23.5 euro cents per share, subject to shareholder approval at our AGM in June.

"Also today we're announcing that we intend to carry out a share buyback of €500 million during the course of 2017 which may be implemented through one or more share buyback programmes.

"We have great confidence in IAG's future prospects and are increasing cash returns to our shareholders."

Cantor Fitzgerald Hold 548.25 500.00 500.00 Reiterates

Credit Suisse Outperform 529.75 631.00 657.00 Retains

StockMarketWire.com
International Consolidated Airlines Group's first quarter operating profits before exceptional items rose to €170m up from €155m last time - a record performance in what is traditionally its weakest quarter.

The group said the period had seen increasing fuel prices and a stronger US dollar against both the euro and sterling.

Sterling had also devalued significantly against the euro.

It said the transactional foreign exchange impact for the group was net nil, while translation exchange was significant.

The group's reported revenues and expenses were lower by €406 million and €374 million respectively with a net adverse impact on operating profit of €32 million.

Passenger revenue decreased 4.2% compared to the same period last year.

Passenger unit revenue (passenger revenue per ASK) was down 3.1 per cent at constant currency from lower yields (passenger revenue/revenue passenger kilometre) impacted by the timing of Easter.

At constant currency, passenger yields decreased on leisure routes with the shift in Easter from March last year to April this year, partially offset by improvements in corporate bookings.

IAG said: "Although passenger yields are down in the quarter, the passenger revenue performance trend improved versus the previous quarter. Passengers carried by the Group rose to 21,147 thousand, an increase of 3.8 per cent.

"Cargo revenue for the period decreased 2.3 per cent, 2.1 per cent at constant currency.

"The Cargo premium mix remained strong partially offsetting overall yield decreases while cargo tonnes carried were broadly flat. "Other revenue was up 13.7 per cent or €64 million excluding currency impacts, from an increase in activity at Iberia's third party maintenance (MRO) business, BA Holidays and Avios.

Chief executive Willie Walsh said: "We're reporting an operating profit of €170 million before exceptional items which is up from €155 million compared to last year.

"This is a record performance in Q1, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing. "The impact of currency exchange was €32 million in the quarter due to the translation of sterling profit into euros. "In March we launched LEVEL, our new longhaul low cost airline brand, which starts flights from Barcelona to Los Angeles, San Francisco, Punta Cana and Buenos Aires in June. It's already been extremely successful with sales running well ahead of expectations."

Separately, IAG said group traffic in April, measured in revenue passenger kilometres, increased by 10.0 per cent versus April 2016; group capacity measured in Available Seat Kilometres rose by 4.0 per cent.

Group premium traffic for the month of April increased by 7.0 per cent compared to the previous year.

APRIL 2017 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in April, measured in Revenue Passenger Kilometres, increased by 10.0 per cent versus April 2016; Group capacity measured in Available Seat Kilometres rose by 4.0 per cent.

§ Group premium traffic for the month of April increased by 7.0 per cent compared to the previous year.

5 May 2017



STRATEGIC DEVELOPMENTS

On 5 April, British Airways launched a £400 million investment plan which includes improvements in Club World, the introduction of Club Europe on UK domestic services, new lounges and First Wing direct security and lounge access at Heathrow. In addition, self-service check-in and biometric boarding gates will speed up airport processes. Over the next two years, the airline's shorthaul and longhaul fleets will be fitted with the latest generation Wi-Fi.

On 24 April, IAG announced that following its highly successful accelerator programme, Hangar 51, the Group will invest in two start-ups. Esplorio (an app that records and shares travel experiences) and Vchain (blockchain technology that allows customers to have control over their data and helps them get through airports faster) were selected to continue working with the Group to further develop their products and benefit customers. They will also receive funding from IAG's multimillion pound investment fund for digital transformation.

On 2 May, Vueling announced that it has carried more than 100 million passengers at Barcelona airport since it started operations 13 years ago. Vueling is the leading airline at El Prat from where it flies to more than 130 European destinations and has 36 per cent market share.

Flew BA To Germany a couple of weeks ago. Not what it was thats for sure even before the chaos.

A Possible recovery play here after the expected fall chaps and chapesses?

Let's watch 'the expected fall' first, eh?

This latest IT fiasco could cost them £50m-£100m so it will be interesting to see what the market makes of things.

On Skinny's chart above there are various support levels right down to 360.

Last resistance and to fill that gap would be my guess initially.

A reported 2.7% drop on yesterday's Spanish market may be some indicator as today's price, but as more emerges from this public relations disaster who knows.

Also Willie (where is he) Walsh has not been seen nor heard yet... always one to be heard when the good news needs airing but seemingly not the very bad news.

More problems with check-ins yesterday http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1501675776753046800.html

StockMarketWire.com
International Consolidated Airlines Group reported operating profits of €3,015m for the year to the end of December, up 18.9% from a year ago, benefitting from reduced fuel costs for most of the year.

The group also announced its intention to carry out a €500m share buyback programme in 2018.

Fourth quarter operating profit was €585m before exceptional items, down from €620m.

Operating profits were weighed by a charge of €288m during the year related to restructuring costs. More than half of cost, €180m, was related to a collective redundancy programme, as part of Iberia's transformation plan Plan de Futuro II.

Revenue for the year rose by 1.8% to €22,972m and passenger unit revenue was up 1.5% at constant currency.

Fuel unit costs for the year before exceptional items was down 7.8%, down 9.1% at constant currency.

Non-fuel unit costs for the year before exceptional items was down 1.3% and up 2.7% at constant currency.

Profit after tax rose 12.7% to €2,243m and diluted earnings per share rose by 14%.

The full year dividend was up 14.9% 27 cents.

Overall capacity increased 6.3% and the fastest growing regions were the Middle East, Europe and Asia, with passenger load factors down on the Middle East.

Overall passenger load factor improved 0.9 points to 81.4%, having improved for more than five consecutive years. Europe saw the highest load factor, up 1.5 points, followed by North America, although the latter's load factor was broadly flat against last year.

At current fuel prices and exchange rates, IAG expects its operating profit for 2018 to show an increase year-on-year. Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currency.

Chief executive Willie Walsh said: 'All our airlines performed extremely well with their best-ever individual financial results, strong operational performances and commitment to customer service. The turnaround in Vueling, following the challenges of 2016, has been particularly outstanding.'

'In quarter 4 we reported an operating profit of €585 million, down from €620 million last year. Our strong performance continued with passenger unit revenue up 2.4 per cent at constant currency. The operating profit was impacted significantly by changes in the employee bonus provision in the quarter compared to the previous year.'

'We're pleased to confirm that the Board is proposing a final dividend of 14.5 euro cents per share. This brings the full year dividend to 27.0 euro cents per share, subject to shareholder approval at our AGM in June. With the dividend and share buyback, we returned more than €1 billion to our shareholders last year.'

'Our confidence in IAG's future remains undaunted and today we're announcing our intention to undertake a share buyback of €500 million during 2018.'

Half-year Report

SIX MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (August 3, 2018) presented Group consolidated results for the six months to June 30, 2018.

IAG period highlights on results:

· Second quarter operating profit €835 million before exceptional items (2017 restated(1): €790 million)

· Net foreign exchange operating profit impact for the quarter adverse €66 million

· Passenger unit revenue for the quarter down 1.9 per cent, up 2.3 per cent at constant currency

· Non-fuel unit costs before exceptional items for the quarter down 4.5 per cent, down 2.0 per cent at constant currency

· Fuel unit costs for the quarter up 6.7 per cent, up 15.0 per cent at constant currency

· Operating profit before exceptional items for the half year €1,115 million (2017 restated(1): €950 million), up 17.4 per cent

· Cash of €8,146 million at June 30, 2018 was up €202 million on June 30, 2017 and adjusted net debt to EBITDAR improved by 0.3 to 1.2 times

more.....

JULY 2018 - GROUP TRAFFIC AND CAPACITY STATISTICS

Group traffic in July, measured in Revenue Passenger Kilometres, increased by 7.5 per cent versus July 2017; Group capacity measured in Available Seat Kilometres rose by 5.7 per cent.

3 August 2018

STRATEGIC DEVELOPMENTS

On 17 July, LEVEL launched its shorthaul operations from Vienna where it will have four A321 aircraft that will operate to 14 European destinations. Earlier in the month, LEVEL started flights from Paris Orly to Montreal and Guadaloupe. Two new A330-200s will be added to its fleet, bringing a total of seven A330-200 aircraft in Paris and Barcelona next year.

More on cyber attack https://www.moneyam.com/action/news/showArticle?id=6182107

3rd Quarter Results

International Consolidated Airlines Group (IAG) today (October 26, 2018) presented Group consolidated results for the nine months to September 30, 2018.

IAG period highlights on results:

· Third quarter operating profit €1,460 million before exceptional items (2017 restated(1): €1,450 million)

· Net foreign exchange operating profit impact for the quarter adverse €111 million

· Passenger unit revenue for the quarter up 1.3 per cent, up 2.4 per cent at constant currency

· Non-fuel unit costs before exceptional items for the quarter up 0.5 per cent, down 0.7 per cent at constant currency

· Fuel unit costs for the quarter up 14.3 per cent, up 15.0 per cent at constant currency

· Operating profit before exceptional items for the nine months period €2,575 million (2017 restated(1): €2,400 million), up 7.3 per cent

· Completion of second €500m share buyback programme on October 24

· Interim dividend of 14.5 euro cents per share

more.....

Liberum Capital Buy 605.80 875.00 Reiterates