The Group’s cash position was €6,421 million up €1,477 million from December 31, 2014. British Airways’ cash position was €3,730 million, Iberia €1,118 million, Vueling €829 million and the parent and other Group companies €744 million.
Compared to December 31, 2014, the Group’s adjusted net debt decreased by €618 million to €5,463 million and adjusted net debt to EBITDAR improved 0.4 points. Adjusted gearing improved by eight points.
Principal risks and uncertainties
During the period we have continued to maintain and operate our structure and processes to identify, assess and manage risks. The principal risks and uncertainties affecting us, detailed on pages 87 to 93 of the December 31, 2014 Annual Report and Accounts, remain relevant for the remaining six months of the year.
Other strategic developments
On January 26, 2015, Iberia announced plans to begin flights to Cali and Medellin in Colombia in early July. Iberia highlighted that this has been possible due to its restructuring which has allowed it to achieve a competitive cost base.
Iberia and its subsidiary Iberia Express were the world’s most punctual airlines in January according to the latest ranking published by FlightStats. Iberia led network carriers with 92.72 per cent of flights on time while Iberia Express achieved 96.34 per cent punctuality the highest score among low cost carriers. The airline’s improvement in operational performance has been a key aspect of its restructuring.
British Airways is changing its ‘On Business’ loyalty scheme for small and medium sized businesses to incorporate American Airlines and Iberia. The new partnership will allow On Business members to benefit from collecting and spending across all three airlines under one program.
Vueling Airlines has become the first airline to offer a self-service baggage check-in at its hub in Barcelona, also as part of a marketing agreement, Vueling has begun to install power outlets in the priority seats of its fleet.
On March 4, 2015, Iberia announced that it had reached an agreement with Airbus to take early delivery of eight Airbus A330-200s that IAG ordered for the airline last year to replace Airbus A340-300s. The new aircraft will join Iberia’s longhaul fleet up to 14 months earlier than initially planned, between November 2015 and December 2016.
On March 19, 2015, Vueling signed an agreement with American Airlines to feed its longhaul flights from the US at Barcelona-El Prat and Rome-Fiumicino airports.
On March 29, 2015, British Airways began its Airbus A380 services to San Francisco from London Heathrow adding 6,000 more seats a month between the two cities.
In April 2015, IAG took delivery of its first five Airbus A320s standardized aircraft which have joined Vueling’s fleet. The aircraft are part of IAG’s harmonization plan which aims at reducing costs by standardizing its Airbus A320 fleet across the Group.
On May 13, 2015, Iberia announced that it won 17 out of 21 tendered licenses to provide handling services at Spanish airports. The airline remains the main handling operator in Spain and highlighted that this outcome has been achieved due to the cost and productivity agreements reached with its employees.
On May 27, 2015, British Airways started daily flights to Kuala Lumpur on a four class Boeing 777-200 ER aircraft. The airline also announced two new routes from Heathrow for the winter season. From October 25, 2015, it will start flights to Keflavik (Reykjavik) while services to Salzburg will commence on December 5, 2015.
On June 1, 2015, Iberia resumed its flights to Havana. The five per week service between Madrid and the Cuban capital is operated on Airbus A330 aircraft with new longhaul cabins. These new flights aim to strengthen further Iberia’s leadership between Europe and Latin America.
On June 9, 2015, Vueling announced that it had become a member of IATA (International Air Transport Association). The airline will benefit from lower costs on transactions with IATA members.