IAG results out, record Q1
 

http://www.bbc.com/news/business-39815659

Revenue down 2.8%

Profit up by 10%


Share price up 5%

I was about to post the same!

Sorry ;)

No worries. I was too slow :D

All the signs of cost cutting. Reduced revenue and increased profit.

Exactly. And what happens when there's nothing left to cut

....and if there is to be any change is customer behaviour (i.e. revenue impact) this will lag the cost benefit.

http://www.stockmarketwire.com/artic...e-for-IAG.html

"Group premium traffic for the month of April increased by 7.0 per cent compared to the previous year"

Will it shows IAG management are doing right by the shareholders, but I feel this can't be good for passengers.

Investing after brexit at £3.60 a share was worth it I think.

Not really - since this has been picked up by a few posts I'd highlight a few quotes:

The key factor given for revenues was "passenger yields decreased on leisure routes with the shift in Easter from March last year to April this year, partially offset by improvements in corporate bookings."

And for costs: "Non-fuel unit costs ... up 1.4 per cent at constant currency" so the bigger factor, not cost cutting, was "fuel unit costs down 16.1 per cent" but yes indeed "employee unit costs improved 2.6 per cent with salary awards more than offset by efficiency initiatives achieved by all airlines."

The decline in fuel prices was probably also a drag on revenue, not related to demand.

Interesting, certainly smashes the many predictions of impending collapse due to all the cuts on here.

I suspect it may have allowed them them to offer better fares to corporate accounts who will care little for a flower in a toilet when making decisions

But, while it's not stated, that probably includes the reverse effect from Q1 of the shift of Easter to April. And the 4% capacity growth.

So revenue and profit fell.
Sorry I am always skeptical of numbers are it's so easy to 'cook the books' these days!
Because by my books profit down 45% on Q1 last year and revenue down 5.9%.
Am I missing something here?
Or are they making the numbers 'look better than they actually are in reality'
Earnings per share down?