IAG reports higher operating profit
International Consolidated Airlines Group (IAG – British Airways, Iberia, Vueling)) today presented Group consolidated results for the nine months to September 30, 2014.
IAG period highlights on results:
- Third quarter operating profit €900 million (2013: €690 million) before exceptional items, €210 million better than last year
- At constant currency, third quarter passenger unit revenue down 0.9 per cent and non-fuel unit costs down 4.5 per cent
- Revenue for the quarter up 8.5 per cent to €5,866 million, up 6.9 per cent at constant currency
- Fuel unit costs for the quarter down 7.5 per cent at constant currency
- Operating profit for the nine months €1,130 million (2013: €657 million) before exceptional items, €473 million better than last year
- Exceptional charge of €82 million for currency re-evaluation
- Cash of €5,064 million at September 30, 2014, up €1,431 million on 2013 year end
- Adjusted gearing down 4 points to 46 per cent
Willie Walsh, IAG Chief Executive Officer, said:
“This quarter we are reporting an operating profit before exceptional items of €900 million. At constant currency,
revenue was up 6.9 per cent with non-fuel unit costs down 4.5 per cent and fuel unit costs down 7.5 per cent.
“We continued to grow capacity efficiently and both our non-fuel and fuel unit cost performances were strong with
the latter boosted by the introduction of new, more efficient aircraft into our fleet.
“British Airways made an operating profit of €607 million, compared to €477 million last year, and grew capacity
while retaining its focus on cost control. Iberia’s operating profit increased to €162 million from €74 million last year
highlighting its strong cost discipline combined with the continued benefits of restructuring. Vueling continued to
grow, developing new bases in Italy and Belgium, with an operating profit of €140 million compared to €139 million
“In the nine months, we made an operating profit of €1,130 million before exceptional items, up by €473 million
from last year”.
For the full year 2014, we expect to produce an improvement in operating profit before exceptional items in the
range of €550 million to €600 million, from a base of €770 million in 2013.