IAG numbers show Aer Lingus off to flier
As part of its financial results, for the nine months to the end of September, IAG yesterday included early figures for Aer Lingus, from the date it finally concluded the acquisition of the Irish carrier — August 18 — to the end of September.
On an overall group basis, IAG (which also owns British Airways, Iberia and low fares Spanish carrier, Vueling) reported a 13% year-on-year jump in total revenues, for the period, to €17.1bn, with net profit soaring by 70% to almost €1.2bn.
The group said that cash levels were up by €1.84bn to almost €6.8bn on the corresponding period last year, having also been boosted by a €958m contribution from Aer Lingus.
IAG chief executive, Willie Walsh didn’t offer any future outlook on Aer Lingus contribution but gave an enthusiastic early response.
“Aer Lingus made an operating profit of €45m since it joined IAG on August 18. While the airline’s profitability is seasonal, Aer Lingus is cost-effective and provides a natural gateway to build our business between Europe and North America. It’s a great asset for the group,” he said.
“We’re reporting strong quarter results with a positive contribution from all our airlines. Our passenger unit revenue showed a better trend than in the second quarter of the year and our cost performance remained strong,” Mr Walsh added.
Excluding Aer Lingus, IAG posted third-quarter operating profit of just over €1.2bn, higher than a consensus forecast of over €1.19bn. Mr Walsh has promised investors further details of potential savings from the €1.3bn acquisition of Aer Lingus at a group presentation next Friday, when forecasts for IAG’s 2016 performance are also expected to be made.
IAG used yesterday’s figures to formally launch its maiden dividend payment, with 10c per share the interim payment being offered. Earlier in the week, the group announced that its board had approved the move, the first payout in its four year history as a consolidated group.
Proposals for a final dividend, for 2015, will be announced when the group publishes its next annual results. Analysts say that 2016 could be a bumper year for IAG as long-term fuel deals expire, allowing it to benefit fully from an oil price that has more than halved since June last year.
IAG also, yesterday, upped its full-year profit guidance, for 2015, saying it now anticipates to generate an operating profit of between €2.25bn and €2.3bn, excluding contribution from Aer Lingus. It had previously said profit for the year would come in at just over €2.2bn. Analysts had expected the upgrade.
* Additional reporting by Reuters
