IAG Investor Relations

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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.

MERGER BETWEEN BRITISH AIRWAYS AND IBERIA

International Consolidated Airlines Group, S.A. - Admission

Earlier today (24 January 2011), the listings of British Airways and Iberia shares were cancelled. IAG shares were admitted to the Official List by the UKLA and to trading on the London Stock Exchange and on the Madrid, Barcelona, Bilbao and Valencia stock exchanges (through the Spanish Stock Exchange Interconnection System) with effect from 8.00 a.m. (London time).

Presumably have to wait for broker anaysis & valuations now. Was hoping for an initial surge when launched, but not to be.

Broker note from Merrill lynch:
"Based on the close share prices of BA and Iberia, we estimate the IAG valuation implies a FY 12/11E PE multiple of 16.8x falling to 10x for FY12/12E. We see a potential valuation range between 315p and 350p (3.8 and 4.2) per share, suggesting upside potential. This includes an FY12/11E EV/IC multiple range between 0.32x and 0.34x. At the low end of the range, this would imply FY12/11E and FY12/12E PE multiples of 19.4x (includes only limited synergies) and 11.5x respectively. At the high end of the range, this would imply FY12/11E and FY12/12E PE multiples of 21.4x and 12.7x respectively."

International Consolidated Airlines started at Investec as hold, 281p TP

Looks likely that high oil prices are going to affect their next set of results. Not sure that the broker targets are achievable in the mid term.

1st Quarter Results.

IAG period highlights:



Operating loss for the quarter to March 31, 2011 of 102 million (2010: operating loss 238 million)
Loss before tax for the quarter of 47 million (2010: loss before tax of 273 million)

Revenue for the quarter rose by 15.4 per cent to 3,636 million (2010: 3,152 million), including 98 million or 3.1 pts of currency translation

Premium yield up 4.4 per cent on top of volume increase of 11.9 per cent

Fuel costs up 30.9 per cent to 1,128 million (2010: 862 million)

Other operating costs up 3.2 per cent at 2,610 million, including 66 million or 2.6 pts of currency translation. Non-fuel unit costs down 5.2 per cent, or 7.6 per cent at constant currency translation

Cash down 35 million to 4,317 million (December 2010: 4,352 million)

Group net debt down 383 million to 512 million (December 2010: 895 million)

Just had a punt here with a tight stop, in the hope that today's meeting proves fruitful!

BA strike: Airline and union agree to end dispute

British Airways and the Unite union have reached an agreement to settle their long-running industrial dispute.

As part of the deal BA has agreed to restore travel concessions to staff who went on strike and to award some lower-paid employees top-up payments.

Both issues were at the centre of the bitter dispute which has lasted for almost two years and involved 22 days of strikes.

The agreement will now be put to a ballot of about 10,000 union members.

Above 250 (for now).

Are you now going short?

Harry - I'm still long for my sins.

Sell IAG now at 250p... volcanic ash imminent

Half Yearly Report.

29 July 2011

SIX MONTHS RESULTS ANNOUNCEMENT

International Airlines Group today (July 29) presented Group consolidated results for the six months ended June 30, 2011. In addition, IAG presented combined results for the six months ended June 30, 2011 including Iberia's first 21 days of January.

IAG period highlights on combined results:

-- Second quarter operating profit of EUR190 million, before exceptional items (2010: operating loss EUR71 million). Passenger unit revenue up 9.4 per cent for the quarter and non-fuel unit costs down 5.8 per cent

-- Operating profit for the half year to June 30, 2011 of EUR88m before exceptional items (2010: operating loss EUR309 million)

-- Profit before tax for the half year of EUR39 million (2010: loss before tax of EUR419 million)

-- Revenue for the half year up 17.9 per cent to EUR7,773 million (2010: EUR6,594 million), including EUR76 million or 1.1 per cent currency translation

-- Passenger unit revenue for the half year up 7.5 per cent, on top of volume increases of 10.4 per cent

-- Fuel costs up 34.8 per cent to EUR2,439 million (2010: EUR1,809 million)

-- Other operating costs before exceptional items, up 4.2 per cent at EUR5,307 million, including EUR53 million of adverse currency translation. Non fuel unit costs down 5.6 per cent, or 5.9 per cent at constant currency

-- Cash down EUR161 million to EUR4,191 million (December 2010: EUR4,352 million)

-- Group net debt down EUR415 million to EUR480 million (December 2010: EUR895 million)

RNS Number : 8080O

International Cons Airlines Group

23 September 2011

LONDON HEATHROW SLOT PURCHASE

IAG has approved the acquisition by British Airways of six daily slot pairs at London Heathrow from bmi British Midland International.

The slots will be used by British Airways from late October 2011 with the airline looking to expand both its longhaul and shorthaul network at the airport.

ends

September 23, 2011 IAG09

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy. Further information on some of the most important risks in this regard is given in the shareholder documentation in respect of the merger issued on October 26, 2010 and in the Securities Note and Summary issued on January 10, 2011; these documents are available on www.iagshares.com.

3rd Quarter Results.

International Airlines Group today (November 4) presented Group results for the three and nine months ended September 30, 2011. In addition, IAG presented combined results for the nine months ended September 30, 2011 including Iberia's first 21 days of January.

IAG period highlights on combined results:

Third quarter operating profit of 363 million, before exceptional items (2010: 528 million)

Operating profit for the nine months to September 30, 2011 of 451 million, before exceptional items (2010: 219 million)

Profit before tax for the nine months of 355 million after exceptional items (2010: 63 million)

Revenue for the nine months up 11.6 per cent to 12,263 million (2010: 10,986 million), including 146 million or 1.3 per cent of adverse currency translation

Passenger unit revenue for the nine months up 4.1 per cent (6.7 per cent at constant currency), on top of capacity increases of 7.7 per cent

Fuel costs for the nine months up 28.5 per cent to 3,751 million, before exceptional items (2010: 2,919 million)

Other operating costs up 2.7 per cent at 8,061 million, before exceptional items, including 122 million or 1.0 per cent of favourable currency translation. Non fuel unit costs down 4.7 per cent, or 3.4 per cent at constant currency

Cash down 200 million to 4,152 million (December 2010: 4,352 million)

Group net debt down 293 million to 602 million (December 2010: 895 million)

IAG AND LUFTHANSA AGREEMENT IN PRINCIPLE ON BMI

RNS Number : 5082R

International Cons Airlines Group

04 November 2011

IAG AND LUFTHANSA REACH AGREEMENT IN PRINCIPLE ON THE SALE OF BRITISH MIDLAND LTD

International Airlines Group (IAG) and Deutsche Lufthansa AG (Lufthansa) have today reached an agreement in principle for the sale of British Midland Ltd (BMI) to IAG.

The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.

ends

INTERNATIONAL AIRLINES GROUP CAPITAL MARKETS DAY

At its inaugural Capital Markets Day today (November 11, 2011) IAG will release the following new financial information to the market:

An operating profit target of around 1.5 billion in 2015 achieved through an increase from 400 million to 450 million in annual synergy targets from year five, structural profit improvements of 400 million plus organic growth of 150 million.

Specific areas of financial benefit including the creation of Iberia Express (at least 100 million), hub improvements at Madrid Barajas (at least 100 million).

From a 2010 base, we expect the optimisation of the transatlantic joint business with American Airlines to deliver at least 150 million.

Planned capital expenditure programme of 1.1 billion in 2011, 1.6 billion in 2012, 2.0 billion in 2013, 1.35 billion in 2014, 1.6 billion in 2015.

Cost efficiency gains from the introduction of new aircraft into the fleet of around 250 million.

Organic capacity growth rate of 2.5 per cent per annum up to 2015.

EU emissions trading costs of 90 million in year one of the scheme at current
carbon prices.

View into 2012: at todays spot fuel price, we would expect around 14% growth in unit fuel costs; we expect unit costs ex-fuel to be flat; we plan to grow capacity by 2.5%.

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This won't be helping today - Iberia pilots to vote on strike over new airline

Nov 22 (Reuters) - The pilots and crew of Spanish air carrier Iberia will decide on Nov. 30 whether to take strike action against the company's plans to launch a low-cost carrier with new, and cheaper, personnel, a union spokesman said.

American Airlines files for Chapter 11 protection

American Airlines' parent company AMR Corporation has filed for Chapter 11 bankruptcy protection in an attempt to cut debt and reduce labour costs.

The company expects the airline to continue to operate as normal throughout the bankruptcy process.