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SIX MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (July 31, 2015) presented Group consolidated results for the six months to June 30, 2015.

IAG period highlights on results:

  • Second quarter operating profit €530 million (2014: operating profit of €380 million)
  • Revenue for the quarter up 11.2 per cent to €5,656 million
  • Passenger unit revenue for the quarter up 5.0 per cent and down 6.6 per cent at constant currency
  • Fuel unit costs for the quarter up 3.0 per cent, down 12.0 per cent at constant currency
  • Non-fuel unit costs for the quarter up 3.2 per cent, down 6.9 per cent at constant currency
  • Operating profit for the half year €555 million (2014: operating profit €230 million), up 141 per cent
  • Cash of €6,421 million at June 30, 2015 was up €1,477 million on 2014 year end
  • Adjusted gearing down 8 points to 43 per cent and adjusted net debt to EBITDAR improved 0.4 to 1.5 times

 

 

Performance summary:

Six months to June 30

Financial data € million

2015 

2014 

Higher / (lower)

Passenger revenue

9,119 

8,177 

11.5 %

Total revenue

10,363 

9,289 

11.6 %

Operating profit

555 

230 

141.3 %

Profit after tax

332 

96 

245.8 %

Basic earnings per share (€ cents)

15.8 

4.2 

11.6pts

Operating figures

2015 

2014 

Higher / (lower)

Available seat kilometres (ASK million)

127,243 

120,892 

5.3 %

Seat factor (per cent)

79.3 

78.9 

0.4pts

Passenger unit revenue per ASK (€ cents)

7.17 

6.76 

6.1 %

Non-fuel unit costs per ASK (€ cents)

5.32 

5.10 

4.3 %

€ million

June 30,

December 31,

Higher / (lower)

2015

2014

Cash and interest-bearing deposits

6,421 

4,944 

29.9 %

Adjusted net debt(1)

5,463 

6,081 

(10.2)%

Adjusted net debt to EBITDAR

1.5 

1.9 

(0.4pts)

Adjusted gearing(2)

43%

51%

(8pts)

  • Adjusted net debt is net debt plus capitalised rolling four quarter aircraft operating lease costs.
  • Adjusted gearing is adjusted net debt, divided by adjusted net debt and adjusted equity.

 

 

 

Willie Walsh, IAG Chief Executive Officer, said:

“We made an operating profit of €530 million in the quarter, up from a €380 million operating profit last year.

“At constant currency, revenue was down 1.2 per cent with passenger unit revenue down 6.6 per cent. Non-fuel unit costs were down 6.9 per cent while fuel unit costs were down 12 per cent.

“We said previously that profit improvement would be slower in the second quarter and we are on track to reach our full year targets.

“We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels.

“In the half year, we made an operating profit of €555 million which is up from a €230 million operating profit last year”.


Trading outlook

At current fuel prices and exchange rates our outlook remains unchanged. IAG expects in 2015 to generate an operating profit in excess of €2.2 billion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward-looking statements:
Certain statements included in this report are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements can typically be identified by the use of forward-looking terminology, such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” and include, without limitation, any projections relating to results of operations and financial conditions of International Consolidated Airlines Group S.A. and its subsidiary undertakings from time to time (the ‘Group’), as well as plans and objectives for future operations, expected future revenues, financing plans, expected expenditures and divestments relating to the Group and discussions of the Group’s Business plan. All forward-looking statements in this report are based upon information known to the Group on the date of this report. The Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific events that could cause the forward-looking statements in this report to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy. Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2014; these documents are available on www.iagshares.com.

IAG Investor Relations
2 World Business Centre Heathrow
Newall Road, London Heathrow Airport
HOUNSLOW TW6 2SF

Tel: +44 (0)208 564 2900
Investor.relations@iairgroup.com