IAG share price: Q1 results released
International Consolidated Airlines Group SA (LON:IAG) posted results for the first three months of 2015 today. Following are the highlights of IAG’s statement.
**Highlights of IAG’s statement:**
International Consolidated Airlines Group (IAG) today (April 30, 2015) presented Group consolidated results for the three months to March 31, 2015.
IAG period highlights on results:
· First quarter operating profit €25 million (2014: operating loss of €150 million)
· Revenue for the quarter up 12.0 per cent to €4,707 million, up 3.7 per cent at constant currency
· Passenger unit revenue for the quarter up 6.9 per cent and down 0.8 per cent at constant currency
· Fuel unit costs for the quarter down 4.5 per cent, down 11.0 per cent at constant currency
· Non-fuel unit costs for the quarter up 5.9 per cent, down 2.7 per cent at constant currency
· Cash of €6,003 million at March 31, 2015 was up €1,059 million on 2014 year end
· Adjusted gearing down 3 points to 48 per cent and adjusted net debt to EBITDAR improved 0.2 to 1.7 times.
Willie Walsh, IAG Chief Executive Officer, said:
“IAG made an operating profit of €25 million compared to a €150 million operating loss last year. This is IAG’s first ever quarter 1 operating profit in what is traditionally the weakest quarter of the year. There was a strong improvement both at a Group level and with all three airlines.
“At constant currency, revenue was up 3.7 per cent with passenger unit revenue down 0.8 per cent. In particular, there was a consistent positive performance in our key North American market.
“We achieved a strong unit cost performance with non-fuel unit costs down 2.7 per cent and fuel unit costs down 11.0 per cent, at constant currency. As before, fuel costs benefitted by operating more efficient aircraft and lower fuel prices though hedging and significant currency headwinds reduced the positive impact of lower oil prices.
“Cost discipline across our airlines continued through increased productivity and supplier cost savings, enabling us to improve our operating margin while growing capacity by 5.0 per cent.”
At current fuel prices and exchange rates, IAG expects in 2015 to generate an operating profit in excess of €2.2 billion. The rate of profit improvement in quarter 2 will be slower than in quarter 1, due to the timing of Easter, and an adverse year-on-year fuel price in this quarter (net of fuel and currency hedging).
**More to follow…**
As of 07:15 BST, Thursday, 30 April, International Consolidated Airlines Grp share price is 575.00p.