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Currency tailwinds help lift BA owner IAG higher in first quarter
British Airways owner International Consolidated Airlines Group (IAG) reported first quarter operating profit of 280m before exceptional items on Friday, an improvement from its restated 2017 figure of 160m.
The FTSE 100 company, which also owns the carriers Iberia, Vueling, Level and Aer Lingus and has a minority shareholding in Norwegian Air Shuttle, said its net foreign exchange operating profit impact for the quarter was a favourable 58m.
Passenger unit revenue for the quarter was down 0.7%, but up 3.5% at constant currency.
Non-fuel unit costs before exceptional items for the quarter dropped 5.7%, or 0.9% at constant exchange rates, while fuel unit costs rose 0.6%, or 10.4% at constant currency.
IAG had cash of 7.44bn as at 31 March - down 53m compared to 31 March 2017 - while its adjusted net debt-to-EBITDAR ratio improved by 0.3 to 1.2x.
"We're reporting another strong quarter performance with an operating profit of 280m before exceptional items, up from 160m last year," commented IAG CEO Willie Walsh.
"Our positive passenger unit revenue trend continued with an increase of 3.5% at constant currency," he explained, adding that the trend "benefitted partially from the timing of Easter".
"Non-fuel unit costs before exceptional items were down 0.9% at constant currency."
Walsh also noted that despite higher market prices, IAG's fuel unit costs went up by just 0.6% in euros.
"This quarter British Airways put in place a new flexible defined contribution pension scheme.
"It replaces the existing New Airways Pension Scheme (NAPS) and British Airways Retirement Plan (BARP)."