Oaxaca

Couldn't see this posted elsewhere. IAG full year results out, profits up 8.6%, more or less in line with expectations after the multiple profit warnings last year (were forecasting +40% at end of Q1 2016). Q4 RASK -4.3% (all IAG). Announced share buyback of EUR 500m.

Hope the link works, otherwise google IAG Presentations and you'll find it easily enough.

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzY3OTgyfENoaWxkSUQ 9LTF8VHlwZT0z&t=1&cb=636235198008619875

Hannibal Lecter

This link works

http://www.iagpress.com/phoenix.zhtm...cle&ID=2249130

lost_in_translation

Not as bad as feared, although the 11% drop in passenger revenue per RPK is frightening at first glance - is there a breakdown of how much of this is due to FX anywhere?

When it comes to how much BA cares about its customers these days the fact that they have decided to go for the share buyback option rather than choosing to invest more in the rather sad product says it all, really.

lost_in_translation

Make that a 12% drop for Q4, ouch.

obduro

There's a lot of info in the link (thanks for sharing both) - I've pasted the summary below.

Full year results announcement
International Consolidated Airlines Group (IAG) today (February 24, 2017) presented Group consolidated results for the year to December 31, 2016.
IAG period highlights on results:
• Fourth quarter operating profit €620 million before exceptional items (2015: €530 million)
• Net foreign exchange operating profit impact for the quarter adverse €88 million
• Passenger unit revenue for the quarter down 12.7 per cent, down 4.3 per cent at constant currency
• Non-fuel unit costs before exceptional items for the quarter down 8.8 per cent, down 0.8 per cent at constant currency
• Fuel unit costs before exceptional items for the quarter down 26.6 per cent, down 21.0 per cent at constant currency
• Operating profit before exceptional items for the year to December 31, 2016 of €2,535 million (2015: €2,335 million), up 8.6 per cent
• Net foreign exchange operating profit impact for the year adverse €460 million
• Revenue for the year down 1.3 per cent to €22,567 million and passenger unit revenue for the year down 5.4 per cent at constant currency
• Fuel unit costs for the year before exceptional items down 26.8 per cent, down 25.8 per cent at constant currency
• Non-fuel unit costs for the year before exceptional items down 4.1 per cent and up 0.5 per cent at constant currency
• Cash of €6,428 million at December 31, 2016 was up €572 million on 2015 year end
• Adjusted net debt to EBITDAR improved 0.1 to 1.8 times
• Profit after tax €1,952 million up 28.8 per cent, and diluted earnings per share up 25.7 per cent

Passenger revenue down but profit up 28%. Don't think they'll be crying too much...

IIRC there are a few posters who have/had IAG shares on the board, what are your thoughts?

Worcester

Good for current shareholders,share buyback will be off the open market so unless Qatar decides to be part of that then it will increase their stake in IAG.

No doubt some of the bad news can be blamed on Brexit, especially the FX impact.

Profit may be more important than revenue but they musy be worried about that decline.

HarryHolden68

Willie Walsh was on Radio 4's Today program this morning and when asked about BA's S/H move towards a LCC model said that BA were just catching up with the market which now expects a bundled flight offering. He then uttered, what should be engraved onto his forhead, the immortal line:

"If people don't like it, they can fly with someone else".
Loud and Clear that is Willy - Loud and Clear.
Right up there with Gerald Ratner that is.

He also said that the current strike action is of no financial consequence to BA and that they (MF) will get "no more money and no point talking about it".

What a guy. I wonder if his dog likes him?

peck

Incredible for the guy at the top of the pile to say that. Incredible

ukgooner

Ratner said one of his products was "cr@p" - thats not the same thing at all.

Hes just saying what many have said on here. Quit moaning and move on. The airline has the confidence from its own research that the current s/h Y offer is better suited to market trends, and it obviously has more confidence in that than observing the ongoing debates here on Fliertalk.

Worcester

Don't the results indicate that is what people are doing?

Deltus

What is a "bundled flight offering"? Is "bundled" now a euphemism for "poor"?

T8191

That's the way I read the figures, but then I'm no expert.

And we must not forget that there's more to IAG than BA's s/h Y offer. This Forum seems to indicate significant migration by the F/J community to there carriers. Next year's figures will presumably give us an indication of how things are going overall.

T8191

It's 'bundled' with pay for food, pay for baggage and pay for seat assignment in addition to pay to get on the aircraft.

"Research has shown that people prefer to pay extra for things that used to be free."

henkybaby

That I should not have sold them at €5,90* last week... Then again, I bought around €4,15.

* IBEX

Ldnn1

Not really. Passenger unit revenue has been trashed this year on many competitors too.