International Airlines Group (IAG) (IAG), the holding company of British Airways (London) and Iberia (Madrid) saw its first quarter loss before taxes increase to €263 million ($340.1 million) from €47 million loss a year ago.

The group issued the following report:

International Consolidated Airlines Group (IAG) today (May 11, 2012) presented Group consolidated results for the three months ended March 31, 2012. In addition, IAG presented combined results for the three months ended March 31, 2012, including Iberia’s first 21 days of January in the comparative period.

IAG period highlights on combined results:

·      First quarter operating loss of €249 million, before exceptional items (2011: €102 million loss)

·      Loss before tax for the quarter of €263 million (2011: €47 million loss)

·      Revenue for the quarter up 7.8 per cent to €3,919 million (2011: €3,636 million), including €40 million or 1.1 per cent of favourable currency impact

·      Passenger unit revenue for the quarter up 8.5 per cent (7.3 per cent at constant currency), on top of capacity increases of 0.6 per cent

·      Fuel costs for the quarter up 24.9 per cent to €1,409 million (2011: €1,128 million), fuel unit costs were up 24.0 per cent

·      Non-fuel costs before exceptional items for the quarter up 5.7 per cent at €2,759 million, including €32 million or 1.2 per cent of adverse currency impact. Non-fuel unit costs up 5.1 per cent, or 3.7 per cent at constant currency

·      Cash of €3,574 million at quarter end was down €161 million

·      Group net debt down €19 million in the quarter to €1,129 million

Performance summary:

	Combined Three months to March 31			Consolidated Three months to March 31
Financial data € million (unaudited)	2012(1)	2011(1)	Higher / (lower)	2012(2)	2011(2)
					(excludes 21 days Iberia pre-merger)
Passenger revenue	3,290	3,018	9.0 %	3,290	2,839
Total revenue	3,919	3,636	7.8 %	3,919	3,399
Operating loss before exceptional items	(249)	(102)	144 %	(249)	(65)
Exceptional items	37	–	nm	37	–
Operating loss after exceptional items	(212)	(102)	108 %	(212)	(65)
Loss before tax	(263)	(47)	460 %	(263)	(8)
(Loss)/profit after tax	(146)	33	(542)%	(146)	60
Basic earnings per share (€ cents)				(8.2)	3.3
Operating figures	2012(1)	2011(1)	Higher / (lower)
Available seat kilometres (ASK million)	51,425	51,116	0.6 %
Revenue passenger kilometres (RPK million)	39,140	37,767	3.6 %
Seat factor (per cent)	76.1	73.9	2.2pts
Passenger yield per RPK (€ cents)	8.41	7.99	5.3 %
Passenger unit revenue per ASK (€ cents)	6.40	5.90	8.5 %
Non-fuel unit costs per ASK (€ cents)	5.37	5.11	5.1 %
€ million (unaudited)	At March 31, 2012(2)	At December 31, 2011(1)	Higher / (lower)
Cash and interest bearing deposits	3,574	3,735	(4.3)%
Net debt	1,129	1,148	(1.7)%
Equity	5,739	5,686	0.9 %
Adjusted gearing(3)	43%	44%	(1pt)

(1)    This financial data is based on the combined results of operations of British Airways Plc (‘BA’), Iberia Líneas Aéreas de España S.A. (‘Iberia’) and IAG the Company for the three month period ended March 31, 2012 and 2011. These combined financial statements eliminate cross holdings and related party transactions. Financial ratios are before exceptional items.

(2)    The IAG March 31, 2012 Income statement is the consolidated results of BA, Iberia and IAG the Company for the three month period ended March 31, 2012. The IAG March 31, 2011 comparative is the consolidated results of BA and IAG the Company for the three month period ended March 31, 2011 and Iberia from January 22, 2011 to March 31, 2011.

(3)    Adjusted gearing is net debt plus capitalised operating aircraft lease costs, divided by net debt plus capitalised operating aircraft lease costs and equity.

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