IAG posts first results
Tuesday, 25 Feb, 2011
0
British Airways and Iberia’s parent company IAG announced its first set of results today which showed a profit despite snow and strikes.
The results comprise IAG three month and full year results, Iberia’s full year results and BA’s nine month results. They reflect €119 worth of non-recurring costs such as Iberia restructuring, BA’s scrapping of two Boeing 747s and merger completion costs of €26 million
Operating profit for the quarter to December 31 stood at €6 million, compared to an operating profit loss of €114 million in 2009.
IAG says the €6 million would have been €196 million if it excluded disruption and non-recurring items.
The results show profit before tax for the quarter at €21m. In 2009, there was a loss before tax of €208m. Revenue for the quarter rose by 13.4% to €3,812 million. In 2009, it was €3,362 million. Meanwhile fuel costs rose 5.2% and other operating costs went up by 11.1% at €2,817 million.
IAG chief executive Willie Walsh said: “The combined group figures for the final quarter of 2010 show a return to profitability, versus last year, with a good revenue performance based on strong yields and a small capacity increase.
“The quarterly profit was affected by severe weather in the UK and a Spanish air traffic controllers’ strike which disrupted the airlines’ operations and reduced revenue by €71 million.
“There were also a number of non-recurring costs totalling €119 million including provision for Iberia restructuring costs, impairment charges associated with the decision to scrap two British Airways Boeing 747 aircraft and merger completion costs. In addition, there was a €43 million bonus provision after performance criteria were met.”
In reference to the Middle East uprisings and oil-rich Libya’s current state of virtual civil war, Walsh added: “The current political instability in the Middle East and its impact on fuel prices is being monitored closely”.
The group’s chairman Antonio Vázquez added: “Last year, the IAG airlines recovered from the previous years’ losses and returned to profit despite a number of significant external events. The combined operating profit was €225 million with revenue up by 10 per cent while capacity levels were down. IAG’s cash position remains very strong at €4,352 million with net debt falling by €430 million to €895 million.
“We are confident that we are on track to deliver our synergy targets”.
by Dinah Hatch
Dinah
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Strike action set to cause travel chaos at Brussels airports
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent