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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.

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

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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.

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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

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