IAG Half Year 2017 Results
Jul 28, 2017, 5:05 am
#17
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Jul 28, 2017, 5:05 am
#18
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Jul 28, 2017, 5:38 am
#22
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Jul 28, 2017, 5:41 am
#23
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Jul 28, 2017, 6:08 am
#25
Join Date: Sep 2013
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A couple of extracts from the business section of BBC's website .........
The improved performance was driven by a 4% increase in passenger unit revenues and 13.2% fall in fuel costs, partially offset by a 3.5% increase in non-fuel costs, says analyst Laith Khalaf.
"At the budget end of the market, capacity is expanding. As more planes take to the sky, short haul airlines are having to cut prices to keep them full. With its long haul focus that’s not a problem for IAG, and the group actually expects second half revenue per passenger to improve. The result is that while rivals are seeing the gains from lower fuel prices frittered away in an aggressive price war, at IAG they’re dropping through to the bottom line and profits are taking off. However, IAG’s own capacity growth looks cautious rather than jubilant, and combined with a rapidly falling debt pile could suggest the group is buckling in for turbulence ahead.”
Laith Khalaf
Equity analyst, Hargreaves Lansdown
On the Today programme chief executive Willie Walsh denied that BA had "lost the plot" in terms of customer service.
It was put to him that the 70,000 people who were affected by BA's IT failure in May would not think that the airline was putting customer service first.
"I would accept that we let those customers down, we've apologised, we've said we got it wrong," he said.
"The customers' compensation claims are being processed, we are paying compensation in line with our commitments under EU regulations, we are doing everything we can to make good the disruption that the customers experienced, but it was an isolated event and I think you've got to focus on the fact that BA's passenger numbers continue to increase,he added.
"We're seeing record number of customers flying with us, the customers flying with us are exceeding the growth and the capacity that we're adding and this would not happen if, in the main, we were not doing what customers want which is to provide an excellent network... at prices that cusomers are clearly willing to pay us. "
The improved performance was driven by a 4% increase in passenger unit revenues and 13.2% fall in fuel costs, partially offset by a 3.5% increase in non-fuel costs, says analyst Laith Khalaf.
"At the budget end of the market, capacity is expanding. As more planes take to the sky, short haul airlines are having to cut prices to keep them full. With its long haul focus that’s not a problem for IAG, and the group actually expects second half revenue per passenger to improve. The result is that while rivals are seeing the gains from lower fuel prices frittered away in an aggressive price war, at IAG they’re dropping through to the bottom line and profits are taking off. However, IAG’s own capacity growth looks cautious rather than jubilant, and combined with a rapidly falling debt pile could suggest the group is buckling in for turbulence ahead.”
Laith Khalaf
Equity analyst, Hargreaves Lansdown
On the Today programme chief executive Willie Walsh denied that BA had "lost the plot" in terms of customer service.
It was put to him that the 70,000 people who were affected by BA's IT failure in May would not think that the airline was putting customer service first.
"I would accept that we let those customers down, we've apologised, we've said we got it wrong," he said.
"The customers' compensation claims are being processed, we are paying compensation in line with our commitments under EU regulations, we are doing everything we can to make good the disruption that the customers experienced, but it was an isolated event and I think you've got to focus on the fact that BA's passenger numbers continue to increase,he added.
"We're seeing record number of customers flying with us, the customers flying with us are exceeding the growth and the capacity that we're adding and this would not happen if, in the main, we were not doing what customers want which is to provide an excellent network... at prices that cusomers are clearly willing to pay us. "
Jul 28, 2017, 6:28 am
#26
Join Date: Jul 2010
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Jul 28, 2017, 6:32 am
#27
Join Date: Jul 2010
Location: London, UK
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Posts: 356
Save for fuel savings and FX, their base costs have increased.
Jul 28, 2017, 6:44 am
#29
Join Date: Apr 2015
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Posts: 5,249
Actually, revenues for BA are not up, they're down slightly (from €7,113m to €6,988m). There's a lot of FX and other bits in there to potential explain it, though. It's the rest of IAG that's continued with good top-line growth.
Jul 28, 2017, 7:02 am
#30
Join Date: Feb 2015
Posts: 34
I've not seen the actual discreet numbers (as opposed to percentage numbers) so its not clear to me if such costs would actually have reduced had it not been for the IT failure.