IAG reports strong profit growth in 2011

International Airlines Group (IAG) revenue up 10% - financial highlights:

• Three months ended 31-Dec-2011:
  • Total revenue: EUR4076 million, +6.9% year-on-year;
  • Total operating costs: EUR4052 million, +6.5%;
    • Fuel: EUR1317 million, +34.6%;
    • Labour: EUR1014 million, -0.9%;
  • Operating profit: EUR24 million, +300%;
  • Profit after tax: EUR217 million, +141%;
  • Passenger numbers: 12.3 million, +0.4%;
  • Passenger load factor: 77.7%, -0.2 ppt;
  • Passenger yield: EUR 8.29 cents, +2.1%;
  • Passenger revenue per ASK: EUR 6.44 cents, +1.9%;
  • Cargo traffic (FTKs): +1.1%;
  • Cargo yield: EUR 19.42 cents, +2.2%;
  • Total cost per ASK: ERU 7.63 cents, +0.9%;
  • Cost per ASK excl fuel: EUR 5.14 cents, -8.2%;
• 12 months ended 31-Dec-2011:
  • Total revenue: EUR16,339 million, +10.4% year-on-year;
  • Total operating costs: EUR15,932 million, +9.3%;
    • Fuel: EUR5157 million, +32.0%;
    • Labour: EUR3870 million, +2.1%;
  • Operating profit: EUR407 million, +81%;
  • Profit after tax: EUR555 million, +455%;
  • Passenger numbers: 51.7 million, +2.1%;
  • Passenger load factor: 79.1%, +0.1 ppt;
  • Passenger yield: EUR 8.11 cents, +3.6%;
  • Passenger revenue per ASK: EUR 6.41 cents, +3.6%;
  • Cargo traffic (FTKs): +4.2%;
  • Cargo yield: EUR 19.33 cents, +4.2%;
  • Total cost per ASK: EUR 7.44 cents, +1.6%;
  • Costs per ASK excl fuel: EUR 5.06 cents, -5.6%;
  • Total assets: EUR19,753 million, +53.2%;
  • Cash and cash equivalents: EUR1977 million, +116%;
  • Total liabilities: EUR14,067 million, +39.7%. [more - original PR] [more - CAPA Analysis]

IAG: "Demand in London remains strong, with the encouraging trends we saw in H2 2011 in our long-haul premium cabins, particularly on North Atlantic routes, continuing. Ongoing developments in the Eurozone will be a major factor in our underlying demand growth, especially for our Spanish network. At the current oil price and euro/US dollar exchange rates, we would face a fuel cost increase this year of over EUR1 billion. The year-over-year impact would be particularly severe in Q1 and Q2, but less severe in H2. Higher fuel costs, weaker European markets and labour unrest will imply, for the first part of the year, a reduction in operating results when compared with the first half of last year. We expect the year-over-year cost pressures to reduce as we move through the second half of the year." Source: Company statement, 29-Feb-2012.