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News Release

3rd Quarter 2015 Results

NINE MONTHS  RESULTS ANNOUNCEMENT

  

International Consolidated Airlines Group  (IAG) today (October 30, 2015) presented Group consolidated results for the  nine months to September 30, 2015.
 
IAG period  highlights on results:

     
  • Third quarter operating profit €1,250 million before  exceptional items (2014: €900 million), excluding Aer Lingus €1,205 million
  •  
  • Revenue for the quarter up 15.2 per cent to €6,756  million
  •  
  • Passenger unit revenue for the quarter up 6.5 per  cent. Excluding Aer Lingus and at constant currency down 3.3 per cent
  •  
  • Fuel unit costs for the quarter down 8.6 per cent,  down 19.7 per cent at constant currency
  •  
  • Non-fuel unit costs for the quarter up 5.6 per cent.  Excluding Aer Lingus and at constant currency down 3.5 per cent
  •  
  • Operating profit for the nine months €1,805 million before  exceptional items (2014: €1,130 million), up 59.7 per cent, excluding Aer  Lingus and exceptional items €1,760 million
  •  
  • Cash of €6,786 million at September 30, 2015 was up  €1,842 million on 2014 year end, including €958 million from Aer Lingus
  •  
  • Adjusted gearing down 2 points to 49 per cent and  adjusted net debt to EBITDAR improved 0.1 to 1.8 times

 

Performance summary:

                                                                                                                                                                                                                                                                                                                                                                                                                           

 

 

Nine months to September 30

Financial data € million  

2015 

2014 

Higher / (lower)

Passenger    revenue

15,260 

13,435 

13.6 %

Total    revenue

17,119 

15,155 

13.0 %

Operating    profit before exceptional items

1,805 

1,130 

59.7 %

Exceptional    items

(38)

(82)

53.7 %

Operating    profit after exceptional items

1,767 

1,048 

68.6 %

Profit    after tax

1,180 

694 

70.0 %

Basic    earnings per share (€ cents)

57.1 

33.4 

23.7pts

Operating figures  

2015 

2014 

Higher / (lower)

Available    seat kilometres (ASK million)

203,381 

190,234 

6.9 %

Seat    factor (per cent)

81.7 

80.7 

1.0pts

Passenger    unit revenue per ASK (€ cents)

7.50 

7.06 

6.2 %

Non-fuel    unit costs per ASK (€ cents)

5.24 

5.00 

4.8 %

€ million

September 30,

December 31,

Higher / (lower)

2015

2014

Cash    and interest-bearing deposits

6,786 

4,944 

37.3 %

Adjusted    net debt(1)

7,161 

6,081 

17.8 %

Adjusted    net debt to EBITDAR

1.8 

1.9 

(0.1pt)

Adjusted    gearing(2)

49%

51%

(2.0pts)

     
  • 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’re reporting strong quarter results with a positive  contribution from all of our airlines. IAG made an operating profit before  exceptional items of €1,250 million, up from €900 million last year.
 
  “Our passenger unit revenue showed a better trend than in the  second quarter of the year and our cost performance remained strong.
  “We’re delighted to announce IAG’s first dividend  payment of 10 euro cents per share. For the full year we expect to pay out 25  per cent of our underlying profit after tax in dividends and plan to announce a  proposal for a final dividend for 2015 when the full year results are published.
  “Aer Lingus made an operating profit of €45 million  since it joined IAG on August 18. While the airline’s profitability is  seasonal, Aer Lingus is cost-effective and provides a natural gateway to build  our business between Europe and North America. It’s a great asset for the  Group.”

 

Trading  outlook

At  current fuel prices and exchange rates, IAG expects to generate an operating profit  between €2.25 billion and €2.3 billion for the full year, excluding Aer Lingus.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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