IAG reports strong financial results, livery change coming at Aer Lingus

Aer Lingus Airbus A330-302 EI-ELA (msn 1106) JFK (Stephen Tornblom). Image: 910752.

International Consolidated Airlines Group (IAG) on October 26, 2018 presented Group consolidated results for the nine months to September 30, 2018.

The IAG is the holding company of Aer Lingus, British Airways, Iberia, Level and Vueling.

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:

   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) %
        
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, IAG 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.

It’s back! College Football is returning to Dublin for the Aer Lingus College Football Series. Five epic games from 2020-2024. First up: Notre Dame Football v Navy Football.

Top Copyright Photo: Aer Lingus Airbus A330-302 EI-ELA (msn 1106) JFK (Stephen Tornblom). Image: 910752. The desire to create larger profits are driving an upcoming livery change at Aer Lingus. Look now, the amount of green is expected to be significantly reduced with the upcoming new livery. The first Aer Lingus aircraft in the new colors is expected at the end of January, 2019. The pictured Airbus A330-302, registered as EI-ELA, will probably be the first aircraft to be repainted (always subject to change). The new livery is expected to be something like Iberia Express with green engine cowlings and a dark green shamrock on the tail with two cheat lines down the fuselage. The size and style of the titles are still under discussion pending a final livery decision.

In other news, Aer Lingus is expecting their first Avro (BAe) RJ85 (EI-RJN) on Sunday with Aer Lingus titles and a shamrock in green decals.

Below Copyright Photo: Aer Lingus Airbus A330-302 EI-ELA (msn 1106) DUB (SM Fitzwilliams Collection). Image: 925195.

Named "St. Patrick".

Aer Lingus aircraft slide show:

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