NINE MONTHS RESULTS ANNOUNCEMENT
International Consolidated Airlines Group (IAG) today (October 31, 2019) presented Group consolidated results for the nine
months to September 30, 2019.
IAG third quarter results highlights:
- Third quarter operating profit €1,425 million before exceptional items (2018 pro forma1: €1,530 million, 2018
statutory: €1,460 million)
- The quarter was heavily impacted by industrial action by BALPA pilots, which together with other disruption resulted
in an adverse operating profit impact of €155 million
- Passenger unit revenue for the quarter down 0.5 per cent, down 1.1 per cent at constant currency
- Non-fuel unit costs before exceptional items for the quarter up 0.5 per cent, up 1.1 per cent at constant currency on
a pro forma1 basis.
- Fuel unit costs for the quarter up 6.1 per cent, up 4.2 per cent at constant currency
- Net foreign exchange operating profit impact for the quarter favourable €41 million
- Operating profit before exceptional items for the period of nine months €2,520 million (2018 pro forma1: €2,770
million, 2018 statutory: €2,575 million), down 9.0 per cent
- Cash of €7,838 million at September 30, 2019 was up €1,564 million on December 31, 2018 and net debt to EBITDA
of 1.2 times in line with 2018
- Profit after tax before exceptional items for the period of nine months €1,814 million down 6.0 per cent (down 27.8
per cent on a statutory basis), and adjusted earnings per share down 1.4 per cent on a pro forma1 basis
- Interim dividend of 14.5 € cents per share
Willie Walsh, IAG Chief Executive Officer, said:
- In quarter 3 we’re reporting an operating profit of €1,425 million before exceptional items, down from €1,530 million last
- These are good underlying results. As we said in September, our performance has been affected by industrial action by
pilots’ union BALPA and other disruption including threatened strikes by Heathrow airport employees.
- In addition, our fuel bill increased by €136 million during the quarter with fuel unit costs up 4.2 per cent at constant
- At constant currency, passenger unit revenue decreased by 1.1 per cent while non-fuel unit costs were up 1.1 per cent
At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be €215 million
lower than 2018 pro forma (€3,485 million). Passenger unit revenue is expected to be slightly down at constant currency and
non-fuel unit costs are expected to improve at constant currency.