IAG share price: First-quarter operating loss shrinks to €150 million

on May 9, 2014
Updated: Apr 9, 2020

iNVEZZ.com, Friday, May 9: International Consolidated Airlines Group (LON:IAG) today posted a lower first-quarter operating loss year-on-year, with the result reflecting a reduction in losses at the company’s Spanish unit Iberia.

IAG’s share price, which has soared more than 40 percent over the past year, has added more than one percent in London this morning.
**IAG earnings release**
IAG announced in a statement today that its operating loss in the quarter ended March 31, 2014, had dropped to €150 million (£88.6 million), excluding exceptional items, as compared with an operating loss of €278 million (£169.5 million) in the prior-year quarter. First-quarter revenue surged 6.7 percent to €4.2 billion, up 7.6 percent at constant currency. The operating loss at Iberia almost halved from €202 million to €111 million, while British Airways made an operating loss of €5 million in the quarter, compared to a €72 million operating loss posted in 2013.

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“We’re pleased that our quarterly operating loss has reduced significantly from €278 million last year to €150 million,” IAG’s chief executive Willie Walsh said in the statement.
Today’s results come after IAG reported in February that it had returned to profit last year on the back of an improved performance at British Airways and a significant restructuring programme at Iberia. (IAG share price: British Airways parent swings to profit in 2013) At the time, the company said that it expected to make ‘steady progress’ in the current year towards its 2015 operating profit target of €1.8 billion.

In today’s statement, IAG said that it expected to improve operating profit for the current year by at least €500 million, from a 2013 base of €770 million.
**Traffic figures**

The British Airways and Iberia parent also released its traffic statistics for April, reporting that its traffic measured in revenue passenger kilometres had increased by 18 percent versus March 2013. IAG’s premium traffic for the month rose by four percent compared to the previous year.

Last month, IAG reported that its March traffic had jumped 10.2 percent year-on-year, equivalent to 2.6 percent on a pro-forma basis. (IAG traffic figures)
**Analysts on IAG**
As of May 2, 2014, the consensus forecast amongst 33 polled investment analysts covering IAG for the Financial Times advises that the company will outperform the market.
Analyst Ratings Network reports that the British Airways owner currently has a consensus ‘hold’ rating and an average price target of 505.11p.
**On May 8, buy IAG shares at 405.30p.**
**On May 8, sell IAG shares at 405.00p.**


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