International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London and Madrid) today (February 28, 2014) presented Group consolidated results for the year to December 31, 2013.
IAG period highlights on results:
- Fourth quarter operating profit โฌ113 million (2012: operating loss of โฌ40 million) before exceptional items
- At constant currency and excluding Vueling and one-offs, fourth quarter passenger unit revenue up 2.7 per cent, and non-fuel unit
costs down 2.7 per cent
- Operating profit for the year to December 31, 2013 of โฌ770 million (2012: operating loss of โฌ23 million) before exceptional items
- Revenue for the year up 3.1 per cent to โฌ18,675 million and passenger unit revenue for the year up 0.6 per cent (3.7 per cent at constant currency)
- Fuel costs for the year down 2.5 per cent to โฌ5,951 million (2012: โฌ6,101 million). Fuel unit costs down 5.0 per cent at constant currency
- Non-fuel costs before exceptional items for year down 0.7 per cent at โฌ11,954 million. Non-fuel unit costs down 5.6 per cent, down 2.7 per cent at constant currency
- Cash of โฌ3,633 million at December 31, 2013 was up โฌ724 million on 2012 year end (December 2012: โฌ2,909 million).
- Adjusted gearing down 1 point to 50 per cent
Willie Walsh, IAG chief executive, said:
โIn 2013, we strengthened the Group by acquiring Vueling, embarking on Iberiaโs transformation and enhancing British Airwaysโ revenue performance. This has led to a strong financial recovery and return to profitability with a turnaround of nearly โฌ800 million. Our operating profit was โฌ770 million before exceptional items, with passenger revenue up 5.8 per cent and non-fuel costs down 0.7 per cent.
โBritish Airways continued its solid revenue performance this year and weโre seeing cost improvements, resulting in an operating profit of โฌ762 million. This is the first full year that itโs benefited from the additional Heathrow slots and greater network flexibility created by bmiโs integration. Both the A380 and Boeing 787 were introduced into the airlineโs fleet successfully. The new aircraftsโ economic and environmental performance has been excellent and customers love them.
โIberia has made huge progress on cost control as its restructuring takes shape and great credit should be given to all those involved. It has reduced its losses in the year, reporting an operating loss of โฌ166 million. The recent pay and productivity agreements between Iberia and its pilot and cabin crew unions are key to reducing the airlineโs costs further and providing the foundation for profitable growth.
โVueling is a great asset and provides a new cultural dimension to IAG. The airline reported an operating profit of โฌ168 million from April 2013, when we acquired it, and expanded its network across continental Europe. To increase capacity while improving profit margins is a tremendous achievement and underlines Vuelingโs value to the Group.
โWe have shown strong financial management this year. Despite buying Vueling and increasing our capital expenditure, cash was up โฌ724 million versus last year and adjusted gearing was down 1 point to 50 per cent.
โQuarter 4 saw an improved financial performance from all our airlines and we are reporting an operating profit of โฌ113 million before exceptional items. Passenger revenue was up 4.0 per cent and non-fuel costs were down 4.1 per centโ.
Trading outlook:
In 2014 we expect to make steady progress towards our 2015 Group operating profit target of โฌ1.8 billion, with relatively flat unit revenue growth, and margin expansion driven by falling unit costs.
Copyright Photo: Keith Burton/AirlinersGallery.com. Vueling has been a good buy for IAG. Formerly operated by Belle Air Europe, Airbus A320-214 EI-LIS (msn 3492) has been repainted at Southend.
British Airways:ย 
Iberia:ย
Vueling Airlines:ย
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