Tag Archives: IAG

IAG backs the Airbus A321XLR with an order for 14 aircraft

International Airlines Group (IAG) has selected the Airbus A321XLR to expand its fleet of highly efficient single aisles with a firm order for 14 aircraft. Of these, eight are destined for Iberia and six for Aer Lingus.

IAG, the parent company of leading airlines also including British Airways, Level and Vueling, is one of Airbus’s largest customers and this agreement will take the overall order from the group to 530 aircraft. IAG airlines combined operate one of the world’s largest Airbus fleets with over 400 aircraft.

The aircraft will enable Aer Lingus to launch new routes beyond the US East Coast and Canada. For Iberia, this is a new aircraft type that will enable it to operate new transatlantic destinations and increase frequencies in key markets.

Images: Airbus.

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International Airlines Group announces intent to buy 200 Boeing 737 MAX airplanes

Boeing has made this announcement:

One of the world’s largest airline groups announced today it plans to build its future fleet with the Boeing 737 MAX with an intention to purchase 200 MAX jets.

International Airlines Group (IAG) and Boeing said the two companies have been in discussions regarding the opportunity and signed a letter of intent at the Paris Air Show in a deal that would be valued at more than $24 billion, per list prices.

IAG is the parent company of Aer Lingus, British Airways, Iberia, Vueling and Level that fly more than 113 million passengers a year combined. The group has been a long-time operator of Boeing twin-aisle airplanes.

 

Earlier this year, IAG group committed to and finalized a major order for Boeing’s newest long-haul model, the 777X, to complement its fleet of current-generation 777s and new 787 Dreamliners. In the single-aisle segment, IAG and its affiliates used to operate Classic 737 aircraft. Today, its fleet is almost exclusively Airbus A320 family aircraft. IAG CEO Willie Walsh has said the group would consider the 737 MAX as part of diversifying its future fleet to spur competition.

In selecting the 737 MAX, IAG says it will fly a combination of the 737 MAX 8, which seats up to 178 passengers in a two-class configuration, and the larger 737 MAX 10 jet, which can accommodate as many as 230 passengers. The airline did not disclose a specific split between the two MAX models, though it anticipates deploying the aircraft at a number of the group’s airlines including Vueling and Level.

When a final agreement is reached, it will be posted to Boeing’s Orders & Deliveries website.

IAG is one of the world’s largest airline groups with 582 aircraft flying to 268 destinations, carrying 113 million passengers in 2018.

In addition, IAG issued this statement:

International Airlines Group (IAG) has signed a letter of intent with Boeing for 200 Boeing 737 aircraft to join its fleet. The LOI is subject to formal agreement.

The mix of 737-8 and 737-10 aircraft would be delivered between 2023 and 2027 and would be powered by CFM Leap engines. It is anticipated that the aircraft would be used by a number of the Group’s airlines including Vueling, Level plus British Airways at London Gatwick Airport.

Willie Walsh, IAG chief executive, said: “We’re very pleased to sign this letter of intent with Boeing and are certain that these aircraft will be a great addition to IAG’s shorthaul fleet.

“We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators”.

 

Boeing, International Airlines Group build on 777X order with services agreements

Boeing and International Airlines Group (IAG), one of the world’s largest airline groups, signed two agreements at the Paris Air Show today that will provide key services for IAG’s British Airways, including parts for the airline’s Airbus A320 family and its Boeing 777 fleet.

With the first agreement, Boeing will furnish British Airways with its Component Services Program where Boeing and its partners will own, manage, and maintain a global exchange inventory of parts for the airline’s A320 and A320neo aircraft. This agreement – the first of its kind for Boeing – will open convenient access to parts for British Airways, which operates an extensive route network.

British Airways has also signed an agreement for three Landing Gear Exchanges for its 777 fleet. Through the program, operators receive an overhauled and certified landing gear from an exchange pool maintained by Boeing, with stocked components and supporting parts shipping within 24 hours.

Following the signing of these new services agreements, Boeing and IAG held a deferred ceremonial signing to celebrate its order for 18 777X airplanes. Earlier this year, IAG placed firm orders for 18 777-9 aircraft and 24 options for British Airways. The airline selected the 777X, the world’s largest, most efficient twin aisle jet, as part of its long-haul fleet modernization program, joining a group of leading global carriers that have selected the new 777X.

The firm order by IAG puts the 777X at 364 orders and commitments from more than eight customers. Production of the 777X began in 2017, with first flight expected later this year and first delivery expected in 2020.

International Airlines Group (IAG) operates 582 aircraft and serves 268 destinations, carrying 113 million passengers in 2018. It is the parent company of Aer Lingus, British Airways, Iberia, LEVEL and Vueling.

IAG reports its first quarter results

International Consolidated Airlines Group (IAG) today (May 10, 2019) presented Group consolidated results for the three months to March 31, 2019.

IAG period highlights on results:

  • First quarter operating profit €135 million before exceptional items (2018 pro forma1: €340 million)
  • Passenger unit revenue for the quarter down 0.8 per cent, down 1.4 per cent at constant currency
  • Non-fuel unit costs before exceptional items for the quarter up 0.8 per cent, down 0.6 per cent at constant currency on a pro forma1 basis
  • Fuel unit costs for the quarter up 15.8 percent, up 11.1 per cent at constant currency
  • Net foreign exchange operating profit impact for the quarter adverse €61 million
  • Cash of €7,481 million at March 31, 2019 was up €1,207 million on December 31, 2018 and net debt to EBITDA improved by 0.2 to 1.0 times
  • Profit after tax before exceptional items €70 million down 62.6 per cent, and adjusted earnings per share down 57.5 per cent on a pro forma1 basis

 

Performance summary:

  Three months to March 31
  Statutory   Pro forma   Statutory
Highlights € million  2019   20181 Higher /

(lower)

2019 20182
Passenger revenue 4,646   4,415 5.2 % 4,646 4,415
Total revenue 5,318   5,022 5.9 % 5,318 5,022
Operating profit before exceptional items 135   340 (60.3)% 135 280
Exceptional items   639 (100.0)% 639
Operating profit after exceptional items 135   979 (86.2)% 135 919
             
Available seat kilometres (ASK million) 75,423   71,093 6.1 %    
Passenger revenue per ASK (€ cents) 6.16   6.21 (0.8)%    
Non-fuel costs per ASK (€ cents) 5.06   5.02 0.8 %    
             
             
Alternative performance measures 2019   20181 Higher /

(lower)

   
Profit after tax before exceptional items (€ million) 70   187 (62.6)%    
Adjusted earnings per share (€ cents) 3.7   8.7 (57.5)%    
Net debt (€ million)3,4 5,225   6,430 (18.7)%    
Net debt to EBITDA3,4 1.0   1.2 (0.2x)    
             
             
Statutory results € million 2019   2018 Higher /

(lower)

   
Profit after tax and exceptional items 70   794 (91.2)%    
Basic earnings per share (€ cents) 3.7   38.5 (90.4)%    
Cash and interest-bearing deposits 7,481   7,442 0.5 %    
Interest-bearing long-term borrowings 12,706   6,953 82.7 %    
For definitions refer to the IAG Annual report and accounts 2018.    

1 Pro forma financial information is based on the Group’s statutory results with an adjustment for IFRS 16 ‘Leases’ from January 1, 2018. A reconciliation of the pro forma financial information to the Group’s statutory results is available on the Company’s website.

2 March 31, 2018 comparatives are the Group’s statutory results as reported.

3 Net debt is long-term borrowings less cash and cash equivalents and other interest-bearing deposits. EBITDA is operating profit before exceptional items and depreciation, amortisation and impairment.

4 The prior year comparative is pro forma December 31, 2018. The December 31, 2018 as reported was adjusted net debt of €8,355 million, and adjusted net debt to EBITDAR of 1.6 times.

 

Willie Walsh, IAG Chief Executive Officer, said:

“In a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of €135 million.

“At constant currency, non-fuel unit costs were down 0.6 per cent while passenger unit revenue decreased by 1.4 per cent.”

 

Trading outlook

At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be in line with 2018 pro forma. Passenger unit revenue is expected to be flat at constant currency and non-fuel unit cost is expected to improve at constant currency. We expect passenger unit revenue at constant currency to improve for the remainder of the year.

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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IAG’s statement on Norwegian

Response to Press Speculation on Norwegian Air Shuttle ASA

International Airlines Group (IAG) notes the recent press speculation that it is considering making an offer for Norwegian Air Shuttle ASA (Norwegian).

IAG considers Norwegian to be an attractive investment and has acquired a 4.61 per cent ownership position in Norwegian (minority investment).

The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian.

IAG confirms that no such discussions have taken place to date, that it has taken no decision to make an offer at this time and that there is no certainty that any such decision will be made.

A further announcement will be made if appropriate.

 

Enrique Dupuy de Lôme

Chief Financial Officer

IAG to acquire Niki, will be put under Vueling

Transferred to Airberlin on January 12, 2017

International Airlines Group – IAG (London) has announced it will acquire insolvent Niki (Vienna) for €36.5 million ($43.8 Million). IAG became the lone bidder after the Lufthansa Group pulled out of the bidding. The IAG also out bid Niki Lauda who was bidding to take back his former airline. The IAG will pay €20 million ($24 million) for Niki’s assets and provide liquidity of up to €16.5 million to Niki.

The new Niki will become a subsidiary of Vueling and the IAG will employ most of the former Niki employees (around 740). Vueling will now be able to grow its presence in Austria, Germany and Switzerland.

Niki is now likely to adopt the Vueling brand.

Copyright Photo: Niki Luftfahrt (flyNiki.com) (Airberlin) Airbus A320-214 D-ABHF (OE-LEE) (msn 2749) PMI (Javier Rodriguez). Image: 937271.

Niki: