International Consolidated Airlines Group (LON:IAG) today (October 26, 2018) announced Group consolidated results for the nine months to September 30, 2018.
IAG period highlights on results:
· Third quarter operating profit €1,460 million before exceptional items (2017 restated(1): €1,450 million)
· Net foreign exchange operating profit impact for the quarter adverse €111 million
· Passenger unit revenue for the quarter up 1.3 per cent, up 2.4 per cent at constant currency
· Non-fuel unit costs before exceptional items for the quarter up 0.5 per cent, down 0.7 per cent at constant currency
· Fuel unit costs for the quarter up 14.3 per cent, up 15.0 per cent at constant currency
· Operating profit before exceptional items for the nine months period €2,575 million (2017 restated(1): €2,400 million), up 7.3 per cent
· Completion of second €500m share buyback programme on October 24
· Interim dividend of 14.5 euro cents per share
Performance summary:
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|
Nine months to September 30 |
|
|
|
Highlights € million |
2018 |
2017 (restated)(1) |
Higher / (lower) |
|
|
|
|
|
|
Passenger revenue |
16,326 |
15,507 |
5.3 % |
|
Total revenue |
18,346 |
17,450 |
5.1 % |
|
Operating profit before exceptional items |
2,575 |
2,400 |
7.3 % |
|
Exceptional items |
584 |
(271) |
nm |
|
Operating profit after exceptional items |
3,159 |
2,129 |
48.4% |
|
|
|
|
|
|
Available seat kilometres (ASK million) |
244,343 |
231,417 |
5.6 % |
|
Passenger revenue per ASK (€ cents) |
6.68 |
6.70 |
(0.3)% |
|
Non-fuel costs per ASK (€ cents) |
4.84 |
5.01 |
(3.2)% |
|
|
|
|
|
|
Alternative performance measures |
2018 |
2017 (restated)(1) |
Higher / (lower) |
|
|
|
|
|
|
Profit after tax before exceptional items (€ million) |
1,970 |
1,805 |
9.1 % |
|
Adjusted earnings per share (€ cents) |
91.9 |
81.7 |
12.5 % |
|
Adjusted net debt (€ million) |
7,475 |
7,183 |
4.1 % |
|
Adjusted net debt to EBITDAR |
1.4 |
1.4 |
(0.0x) |
|
|
|
|
|
|
Statutory results € million |
2018 |
2017 (restated)(1) |
Higher / (lower) |
|
|
|
|
|
|
Profit after tax and exceptional items |
2,514 |
1,597 |
57.4 % |
|
Basic earnings per share (€ cents) |
121.9 |
75.3 |
61.8 % |
|
Cash and interest-bearing deposits |
6,923 |
7,523 |
(8.0) % |
|
Interest-bearing long-term borrowings |
7,342 |
7,578 |
(3.1) % |
|
|
|
|
|
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For definitions refer to the IAG Annual report and accounts 2017. |
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(1)Restated for new accounting standards IFRS 15 ‘Revenue from contracts with customers’ and IFRS 9 ‘Financial instruments’. |
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For definitions refer to the IAG Annual report and accounts 2017.
(1)Restated for new accounting standards IFRS 15 ‘Revenue from contracts with customers’ and IFRS 9 ‘Financial instruments’.
Willie Walsh, IAG Chief Executive Officer, said:
“We’re reporting a good quarter 3 performance with an operating profit of €1,460 million before exceptional items, up from €1,450 million last year.
“These were strong results despite significant fuel cost and foreign exchange headwinds. At constant currency, our passenger unit revenue increased by 2.4 per cent while non-fuel unit costs went down 0.7 per cent.
“We’re pleased to announce an interim dividend of 14.5 euro cents per share and this week we completed our second €500 million share buy-back programme”.
Trading outlook
At current fuel prices and exchange rates, International Consolidated Airlines Group expects its operating profit before exceptional items for 2018 to show an increase of around €200m from a base of €2,950m in 2017. Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currency for the full year.
