IAG Half Year 2017 Results
#1
Original Poster
Join Date: Jan 2010
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IAG Half Year 2017 Results
It looks like, overall, a solid set of numbers:
Source: http://www.iairgroup.com/phoenix.zht...int&ID=2289772
Apparently, the IT fiasco has/will cost £58m.
Source: http://www.bbc.co.uk/news/business-40750168
SIX MONTHS RESULTS ANNOUNCEMENT
International Consolidated Airlines Group (IAG) today (July 28, 2017) presented Group consolidated results for the six months to June 30, 2017.
IAG period highlights on results:
· Second quarter operating profit €805 million before exceptional items (2016: €555 million)
· Passenger unit revenue for the quarter up 1.5 per cent, up 4.0 per cent at constant currency
· Non-fuel unit costs before exceptional items for the quarter down 0.3 per cent, up 3.5 per cent at constant currency
· Fuel unit costs before exceptional items for the quarter down 10.4 per cent, down 13.2 per cent at constant currency
· Operating profit before exceptional items for the half year €975 million (2016: €710 million), up 37.3 per cent, including the adverse foreign exchange impact for the half year of €44 million
· Cash of €7,944 million at June 30, 2017 was up €1,516 million on 2016 year end
· Adjusted net debt to EBITDAR improved by 0.4 to 1.4 times
International Consolidated Airlines Group (IAG) today (July 28, 2017) presented Group consolidated results for the six months to June 30, 2017.
IAG period highlights on results:
· Second quarter operating profit €805 million before exceptional items (2016: €555 million)
· Passenger unit revenue for the quarter up 1.5 per cent, up 4.0 per cent at constant currency
· Non-fuel unit costs before exceptional items for the quarter down 0.3 per cent, up 3.5 per cent at constant currency
· Fuel unit costs before exceptional items for the quarter down 10.4 per cent, down 13.2 per cent at constant currency
· Operating profit before exceptional items for the half year €975 million (2016: €710 million), up 37.3 per cent, including the adverse foreign exchange impact for the half year of €44 million
· Cash of €7,944 million at June 30, 2017 was up €1,516 million on 2016 year end
· Adjusted net debt to EBITDAR improved by 0.4 to 1.4 times
Willie Walsh, IAG Chief Executive Officer, said:
"We're reporting a very strong performance in quarter 2 with an operating profit of €805 million before exceptional items which is up from €555 million last year.
"The underlying trend in unit revenue improved, benefitting partially from Easter and a weak base last year.
"Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways' customers.
"In June, LEVEL started longhaul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We've ordered three additional aircraft and are considering other European bases for the operation."
"We're reporting a very strong performance in quarter 2 with an operating profit of €805 million before exceptional items which is up from €555 million last year.
"The underlying trend in unit revenue improved, benefitting partially from Easter and a weak base last year.
"Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways' customers.
"In June, LEVEL started longhaul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We've ordered three additional aircraft and are considering other European bases for the operation."
Apparently, the IT fiasco has/will cost £58m.
Source: http://www.bbc.co.uk/news/business-40750168
#2
Join Date: Jul 2011
Posts: 1,663
A breakdown of the profits.
'IAG's operating profit for the six months to June 30, 2017 was €975 million before exceptional items, an improvement of €265 million from last year. British Airways made a profit of €741 million before exceptional items (2016: €631 million); Iberia made a profit of €84 million (2016: loss €6 million); Aer Lingus made a profit of €59 million (2016: €42 million) and Vueling's loss was €6 million (2016: loss €54 million).'
'IAG's operating profit for the six months to June 30, 2017 was €975 million before exceptional items, an improvement of €265 million from last year. British Airways made a profit of €741 million before exceptional items (2016: €631 million); Iberia made a profit of €84 million (2016: loss €6 million); Aer Lingus made a profit of €59 million (2016: €42 million) and Vueling's loss was €6 million (2016: loss €54 million).'
#3
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"Ticket prices should rise in the second half when stripping out currency effects, IAG said, joining Air France-KLM in suggesting that network carriers may enjoy a prolonged period of rising airfares. "
#4
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I believe WW was on Radio 4 earlier, but I missed him, and only heard Simon Caulder (and a lady who's name I cannot recall) speaking.
M
M
#5
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#6
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I thought the results might be more mixed following the strike and IT failure. But instead I see good results that presumably will only encourage BA to conclude that it's strategy is right.
I don't see that BA will be changing its cost-cutting focus anytime soon.
I don't see that BA will be changing its cost-cutting focus anytime soon.
#7
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Sadly, I agree.
#9
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And Walsh was quoted during an interview with the BBC saying they will get BA back into a Top 10 carrier over the coming years after being challenged about the "fall" from Worlds Favourite to number 40!!
No substance given though
No substance given though
#10
Join Date: Jun 2003
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Posts: 4,413
"Other provisions includes a €65 million provision recognised during the period on additional compensation fees and baggage claims related to operational disruption at British Airways due to a power failure in quarter 2, 2017."
They should be taking a charge of the full excepted costs, not just the payouts to date, and appear to have done so.
They should be taking a charge of the full excepted costs, not just the payouts to date, and appear to have done so.
#11
Join Date: Feb 2011
Posts: 5,797
Revenues were always going to go up when they started charging for something that used to be free. There is no surprise there.
A key figure is another fall in passenger revenue per RPK, although dont they usually break this up by airline?
A key figure is another fall in passenger revenue per RPK, although dont they usually break this up by airline?
Last edited by 1010101; Jul 28, 2017 at 3:54 am
#12
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#13
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So they are sticking with the 'power failure' excuse? Making it sound like it was the fault of their electricity supplier / national grid rather than one of their own staff / contractors!
but 58m is pretty bad. Bet they are breathing a sigh of relief it's not a lot more due to people not claiming.
but 58m is pretty bad. Bet they are breathing a sigh of relief it's not a lot more due to people not claiming.
#14
Join Date: Feb 2011
Posts: 5,797
Yes, especially considering passengers are now paying for food that was previously free. They're filling more aircraft but they're doing it with lower fares. Whether the strategy works wont be shown for a couple of years yet.
#15
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