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News Release

Final results 2014

FULL YEAR RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (February 27, 2015) presented Group consolidated results for the year to December 31, 2014.

IAG period highlights on results:

  • Fourth quarter operating profit €260 million (2013: operating profit of €113 million) before exceptional items
  • Revenue for the quarter up 9.9 per cent to €5,015 million, up 5.8 per cent at constant currency
  • Non-fuel unit costs for the quarter down 0.8 per cent at constant currency
  • Operating profit for the year to December 31, 2014 of €1,390 million (2013: operating profit of €770 million) before exceptional items
  • Revenue for the year up 8.0 per cent to €20,170 million and passenger unit revenue for the year down 0.4 per cent at constant currency
  • Fuel unit costs for the year down 7.8 per cent also down 7.8 per cent at constant currency.
  • Non-fuel unit costs before exceptional items for the year down 1.9 per cent, down 3.9 per cent at constant currency
  • Cash of €4,944 million at December 31, 2014 was up €1,311 million on 2013 year end
  • Adjusted gearing up 1 point to 51 per cent and adjusted net debt to EBITDAR improved 0.6 to 1.9 times

 

Performance summary:

Year to December 31

Financial data € million

2014 

2013 

Higher / (lower)

Passenger revenue

17,825 

16,264 

9.6 %

Total revenue

20,170 

18,675 

8.0 %

Operating profit before exceptional items

1,390 

770 

80.5 %

Exceptional items

(361)

(243)

48.6 %

Operating profit after exceptional items

1,029 

527 

95.3 %

Profit after tax

1,003 

151 

564.2 %

Basic earnings per share (€ cents)

48.2 

6.4 

41.8pts

Operating figures

2014 

2013 

Higher / (lower)

Available seat kilometres (ASK million)

251,931 

230,573 

9.3 %

Seat factor (per cent)

80.4 

80.8 

(0.4pts)

Passenger unit revenue per ASK (€ cents)

7.08 

7.05 

0.4 %

Non-fuel unit costs per ASK (€ cents)

5.08 

5.18 

(1.9)%

€ million

December 31,

December 31,

Higher / (lower)

2014

2013

Cash and interest-bearing deposits

4,944 

3,633 

36.1 %

Adjusted net debt(1)

6,081 

5,701 

6.7 %

Adjusted net debt to EBITDAR

1.9 

2.5 

(0.6)

Adjusted gearing(2)

51%

50%

1pt

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

 

Willie Walsh, IAG Chief Executive Officer, said:

“We’re reporting strong full year results with an operating profit before exceptional items of €1,390 million which is up 80.5 per cent. Total revenue was up 8.0 per cent with non-fuel costs up 7.0 per cent and fuel costs up 0.6 per cent on capacity growth of 9.3 per cent.

“Iberia made an operating profit of €50 million compared to an operating loss of €166 million last year. The airline’s turnaround has been remarkable, both financially and operationally, and we’re very proud of its achievement especially its strong cost discipline. In 2013 we said our intention was for Iberia to breakeven in 2014 and it has fulfilled that promise.

“British Airways’ operating profit increased to €1,215 million up from €762 million last year which shows significant progress towards its long term targets. Vueling made an operating profit of €141 million, compared to an operating profit of €139 million in 2013, with the airline focusing on flexible growth.
“We achieved a strong unit cost performance, down 4.1 per cent, through increased productivity, supplier cost savings and lower fuel unit costs. The latter was boosted by the introduction of more efficient aircraft into our fleet and lower fuel prices in the last quarter of the year. However, the positive effect of the oil price reduction has been partly offset by hedging and significant currency impact.
“In the quarter, we made an operating profit before exceptional items of €260 million which is up from €113 million last year. Revenue for the quarter was up 9.9 per cent. Non-fuel costs were up 10.5 per cent and fuel costs decreased by 0.4 per cent on capacity growth of 5.8 per cent.”

 

Trading outlook
At current fuel prices and exchange rates, IAG expects in 2015 to generate an operating profit in excess of €2.2 billion, with total fuel costs of around €5.9 billion, based on capacity growth of approximately 5.5 per cent.

 

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 2013; 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