IAG: NINE MONTHS RESULTS ANNOUNCEMENT
International Airlines Group 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)
Willie Walsh, International Airlines Group chief executive, said: “Our revenue is up 2.2 per cent in the quarter driven primarily by volume. However, high fuel costs continue to have a significant impact on our business. This quarter fuel costs are up 23.7 per cent, compared to last year, while non- fuel costs are flat.
“The competitiveness of the UK economy and the aviation industry has been damaged by Air Passenger Duty with UK airlines facing the highest tax levels in the world. Unless the British chancellor reverses this, even more passengers and businesses will avoid the UK and further undermine the economy.
“The main challenge for 2012 will be to offset increased fuel costs, as our hedges unwind, against a background of potentially weaker demand”.