Saturday, 11 May 2019

IAG profits fall as fuel prices rise and currency exchanges prove difficult.

Photo British Airways
The International Airlines Group has released its April 2019 and year to date figures this week, which demonstrated some good positive results, including a 24% increase in passengers on Latin America and Caribbean routes. 

The group also released its first-quarter results,  showing a fall in profits while fuel prices rose, by over 15% affecting the group's bottom line.  

First quarter operating profit €135 million before exceptional items (2018 €340 million), passenger unit revenue for the quarter down 0.8 % down 1.4. Non-fuel unit costs before exceptional items for the quarter up 0.8 per cent, fuel unit costs for the quarter up 15.8%, up 11.1 % at constant currency

Cash of €7,481 million at March 31, 2019, was up €1,207 million on December 31, 2018 and net debt to EBITDA improved by 0.2 to 1.0 times.  Profit after tax before exceptional items €70 million down 62.6 per cent, and adjusted earnings per share down 57.5 % on a pro forma basis.

Willie Walsh, IAG Chief Executive Officer, said: “In a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of €135 million.

 “At constant currency, non-fuel unit costs were down 0.6 per cent while passenger unit revenue decreased by 1.4%.”



Performance summary:

Three months to March 31

Statutory

Pro forma

Statutory
Highlights € million 
2019

20181
Higher /
(lower)
2019
20182
Passenger revenue
4,646

4,415
5.2 %
4,646
4,415
Total revenue
5,318

5,022
5.9 %
5,318
5,022
Operating profit before exceptional items
135

340
(60.3)%
135
280
Exceptional items
-

639
(100.0)%
-
639
Operating profit after exceptional items
135

979
(86.2)%
135
919







Available seat kilometres (ASK million)
75,423

71,093
6.1 %


Passenger revenue per ASK (€ cents)
6.16

6.21
(0.8)%


Non-fuel costs per ASK (€ cents)
5.06

5.02
0.8 %
















Alternative performance measures
2019

20181
Higher /
(lower)


Profit after tax before exceptional items (€ million)
70

187
(62.6)%


Adjusted earnings per share (€ cents)
3.7

8.7
(57.5)%


Net debt (€ million)3,4
5,225

6,430
(18.7)%


Net debt to EBITDA3,4
1.0

1.2
(0.2x)
















Statutory results € million
2019

2018
Higher /
(lower)


Profit after tax and exceptional items
70

794
(91.2)%


Basic earnings per share (€ cents)
3.7

38.5
(90.4)%


Cash and interest-bearing deposits
7,481

7,442
0.5 %


Interest-bearing long-term borrowings
12,706

6,953
82.7 %


For definitions refer to the IAG Annual report and accounts 2018.


April 2019 and year to date results

IAG traffic in April, measured in revenue passenger kilometres, increased by 7.7 per cent versus the same period last year; IAG capacity measured in available seat kilometres rose by 5.8 per cent versus the same period last year.
Group performance
Month of April

Year to date

2019
2018
yoy

2019
2018
yoy








Passengers carried (’000s)
9,852
9,183
7.3%

34,234
32,137
6.5%
Domestic
2,323
2,181
6.5%

8,244
7,739
6.5%
Europe
5,232
4,929
6.1%

17,638
16,699
5.6%
North America
1,064
1,007
5.7%

3,546
3,326
6.6%
Latin America & Caribbean
502
405
24.0%

1,977
1,653
19.6%
Africa, Middle East & S,Asia
523
476
9.9%

2,044
1,991
2.7%
Asia Pacific
208
185
12.4%

785
729
7.7%








Revenue passenger km (m)
23,443
21,759
7.7%

84,321
78,979
6.8%
Domestic
1,687
1,540
9.5%

6,018
5,495
9.5%
Europe
5,967
5,662
5.4%

19,518
18,675
4.5%
North America
6,998
6,713
4.2%

23,548
22,222
6.0%
Latin America & Caribbean
4,128
3,498
18.0%

16,310
14,114
15.6%
Africa, Middle East & S,Asia
2,665
2,492
6.9%

11,384
11,122
2.4%
Asia Pacific
1,998
1,854
7.8%

7,543
7,351
2.6%








Available seat km (m)
28,103
26,561
5.8%

103,526
97,654
6.0%
Domestic
1,963
1,836
6.9%

7,124
6,709
6.2%
Europe
7,371
6,898
6.9%

24,445
23,386
4.5%
North America
8,495
8,416
0.9%

29,923
28,648
4.5%
Latin America & Caribbean
4,805
4,110
16.9%

19,164
16,470
16.4%
Africa, Middle East & S,Asia
3,108
3,061
1.5%

13,807
13,639
1.2%
Asia Pacific
2,361
2,240
5.4%

9,063
8,802
3.0%








Passenger load factor (%)
83.4
81.9
+1.5 pts

81.4
80.9
+0.5 pts
Domestic
85.9
83.9
+2.0 pts

84.5
81.9
+2.6 pts
Europe
81.0
82.1
-1.1 pts

79.8
79.9
-0.1 pts
North America
82.4
79.8
+2.6 pts

78.7
77.6
+1.1 pts
Latin America & Caribbean
85.9
85.1
+0.8 pts

85.1
85.7
-0.6 pts
Africa, Middle East & S,Asia
85.7
81.4
+4.3 pts

82.5
81.5
+1.0 pts
Asia Pacific
84.6
82.8
+1.8 pts

83.2
83.5
-0.3 pts








Cargo tonne km (m)
471
480
-1.9%

1,862
1,836
1.4%








* Domestic includes routes within UK, Spain, Ireland and Italy
* Group figures include Openskies in 2018

Photo British Airways

 

Strategic developments

In April, British Airways opened its new Club lounge at New York’s JFK airport Terminal 7. It completes a £50 million investment following the unveiling of a new space for First customers in autumn last year.

   
Performance by airline
Month of April

Year to date

2019
2018
yoy

2019
2018
yoy








Aer Lingus







Passengers carried (’000s)
997
915
9.0%

3,193
2,958
7.9%
Revenue passenger km (m)
2,072
1,842
12.5%

6,327
5,645
12.1%
Available seat km (m)
2,580
2,437
5.9%

8,384
7,520
11.5%
Passenger load factor (%)
80.3
75.6
+4.7 pts

75.5
75.1
+0.4 pts
Cargo tonne km (m)
15
15
0.0%

54
52
3.8%








British Airways







Passengers carried (’000s)
4,007
3,855
3.9%

14,479
14,027
3.2%
Revenue passenger km (m)
12,897
12,400
4.0%

47,772
46,608
2.5%
Available seat km (m)
15,618
15,301
2.1%

59,451
58,492
1.6%
Passenger load factor (%)
82.6
81.0
+1.6 pts

80.4
79.7
+0.7 pts
Cargo tonne km (m)
362
371
-2.4%

1,424
1,427
-0.2%








Iberia







Passengers carried (’000s)
1,817
1,711
6.2%

6,763
6,258
8.1%
Revenue passenger km (m)
5,093
4,610
10.5%

19,059
17,153
11.1%
Available seat km (m)
5,811
5,350
8.6%

22,236
20,129
10.5%
Passenger load factor (%)
87.6
86.2
+1.4 pts

85.7
85.2
+0.5 pts
Cargo tonne km (m)
93
93
0.0%

380
356
6.7%








Level







Passengers carried (’000s)
152
24
533.3%

441
88
401.1%
Revenue passenger km (m)
584
226
158.4%

2,111
824
156.2%
Available seat km (m)
732
249
194.0%

2,650
932
184.3%
Passenger load factor (%)
79.8
90.8
-11.0 pts

79.7
88.4
-8.7 pts
Cargo tonne km (m)
1
1
0.0%

4
1
300.0%








Vueling







Passengers carried (’000s)
2,879
2,669
7.9%

9,358
8,772
6.7%
Revenue passenger km (m)
2,797
2,630
6.3%

9,052
8,549
5.9%
Available seat km (m)
3,362
3,165
6.2%

10,805
10,323
4.7%
Passenger load factor (%)
83.2
83.1
+0.1 pts

83.8
82.8
+1.0 pts
Cargo tonne km (m)
n/a
n/a
n/a

n/a
n/a
n/a
















* British Airways includes BA CityFlyer; Iberia includes Iberia Express; LEVEL includes Spain, France and Austria
* British Airways figures exclude Openskies in 2018



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