IAG highlights:
- Second quarter operating profit €805 million before exceptional items (2016: €555 million)
- Passenger unit revenue for the quarter up 1.5 per cent, up 4.0 per cent at constant currency
- Non-fuel unit costs before exceptional items for the quarter down 0.3 per cent, up 3.5 per cent at constant currency
- Fuel unit costs before exceptional items for the quarter down 10.4 per cent, down 13.2 per cent at constant currency
- Operating profit before exceptional items for the half year €975 million (2016: €710 million), up 37.3 per cent, including the adverse foreign exchange impact for the half year of €44 million
- Cash of €7,944 million at June 30, 2017 was up €1,516 million on 2016 year end
- Adjusted net debt to EBITDAR improved by 0.4 to 1.4 times
Performance summary:
| Six months to June 30 | ||||
| Financial data € million | 2017 | 2016 | Higher / (lower) | |
| Passenger revenue | 9,575 | 9,539 | 0.4 % | |
| Total revenue | 10,888 | 10,786 | 0.9 % | |
| Operating profit before exceptional items | 975 | 710 | 37.3 % | |
| Exceptional items | (77) | 79 | nm | |
| Operating profit after exceptional items | 898 | 789 | 13.8 % | |
| Profit after tax | 567 | 554 | 2.3 % | |
| Adjusted earnings per share (€ cents) | 28.5 | 22.7 | 25.6 % | |
| Operating figures | 2017 | 2016 | Higher / (lower) | |
| Available seat kilometres (ASK million) | 147,210 | 142,915 | 3.0 % | |
| Seat factor (per cent) | 80.9 | 80.0 | 0.9pts | |
| Passenger unit revenue per ASK (€ cents) | 6.50 | 6.67 | (2.6)% | |
| Non-fuel unit costs per ASK (€ cents) | 5.21 | 5.33 | (2.1)% | |
| June 30, 2017 | December 31, 2016 | Higher / (lower) | ||
| Cash and interest-bearing deposits | 7,944 | 6,428 | 23.6 % | |
| Adjusted net debt | 7,024 | 8,159 | (13.9)% | |
| Adjusted net debt to EBITDAR | 1.4 | 1.8 | (0.4pts) | |
| Adjusted gearing | 50% | 51% | (1pt) | |
| Definitions included in Alternative performance measures section. | ||||
Willie Walsh, IAG Chief Executive Officer, said:
“We’re reporting a very strong performance in quarter 2 with an operating profit of €805 million before exceptional items which is up from €555 million last year.
“The underlying trend in unit revenue improved, benefitting partially from Easter and a weak base last year.
“Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways’ customers.
“In June, LEVEL started longhaul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation.”
Trading outlook
At current fuel prices and exchange rates, IAG expects its operating profit for 2017 to show a double-digit percentage improvement year-on-year. The Group expects second half passenger unit revenue (passenger revenue per ASK) to show an increase versus last year, at constant currency.
