IAG Q3 Financial Results

posted on 31st October 2019 by Eddie Saunders
IAG Q3 Financial Results

International Consolidated Airlines Group (IAG) today (October 31, 2019) presented Group consolidated results for the nine

Willie Walsh, IAG chief executive, said: “These are good underlying results. “As we mentioned in September, our performance has been affected by industrial action by pilots’ union BALPA and other disruption including threatened strikes by Heathrow airport employees.

“In addition, our fuel bill increased by €136 million during the quarter with fuel unit costs up 4.2 per cent at constant currency.”

IAG period highlights on results:

  • Third quarter operating profit €1,425 million before exceptional items (2018 pro forma1: €1,530 million, 2018 statutory: €1,460 million)
  • The quarter was heavily impacted by industrial action by BALPA pilots, which together with other disruption resulted
  • in an adverse operating profit impact of €155 million
  • Passenger unit revenue for the quarter down 0.5 per cent, down 1.1 per cent at constant currency
  • Non-fuel unit costs before exceptional items for the quarter up 0.5 per cent, up 1.1 per cent at constant currency on
  • a pro forma1 basis.
  • Fuel unit costs for the quarter up 6.1 per cent, up 4.2 per cent at constant currency
  • Net foreign exchange operating profit impact for the quarter favourable €41 million
  • Operating profit before exceptional items for the period of nine months €2,520 million (2018 pro forma1: €2,770
  • million, 2018 statutory: €2,575 million), down 9.0 per cent
  • Cash of €7,838 million at September 30, 2019 was up €1,564 million on December 31, 2018 and net debt to EBITDA
  • of 1.2 times in line with 2018
  • Profit after tax before exceptional items for the period of nine months €1,814 million down 6.0 per cent (down 27.8
  • per cent on a statutory basis), and adjusted earnings per share down 1.4 per cent on a pro forma1 basis
  • Interim dividend of 14.5 € cents per share

Willie Walsh, IAG Chief Executive Officer, said: “In quarter 3 we’re reporting an operating profit of €1,425 million before exceptional items, down from €1,530 million last year.

“These are good underlying results. As we said in September, our performance has been affected by industrial action by pilots’ union BALPA and other disruption including threatened strikes by Heathrow airport employees.

“In addition, our fuel bill increased by €136 million during the quarter with fuel unit costs up 4.2 per cent

“At constant currency, passenger unit revenue decreased by 1.1 per cent while non-fuel unit costs were up 1.1 per cent”