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|IAG Q1 Results|
QUARTER 1 RESULTS ANNOUNCEMENT
International Airlines Group today (May 6) presented group results for the full quarter ended March 31, 2011, as well as the results for the group excluding Iberia's first 21 days of January.
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)
IAG chief executive Willie Walsh said: "These are the first ever IAG results and they show an improved performance compared to last year. Revenue is up due to increased volumes, particularly in the premium cabins, and improved yields which also showed good premium growth.
"We have also achieved a significant reduction in our controllable costs, with unit costs excluding fuel down 5.2 per cent. At constant currency rates, unit costs are down 7.6 per cent. The main areas of unit cost reduction are supplier costs and employee costs both down 4.7 per cent. The continued focus on cost control has been achieved while we have seen some measured increases in capacity. We have been able to increase capacity without additional aircraft and employees, highlighting the good work that has been done in previous years.
"Fuel costs remain the big challenge facing the industry and we have seen a 31 per cent rise in the quarter. On a unit cost basis, fuel is up 20.1 per cent.
"We have been working hard to establish IAG over the past few months and are confident that we are on track to deliver our synergy targets"