REG - Intl Con Airline Grp - IAG Announces 3rd Quarter Results
27/10/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231027:nRSa5303Ra&default-theme=true
RNS Number : 5303R International Cons Airlines Group 27 October 2023
IAG third quarter results 2023
Record third quarter profit with strong trading across the Group and a
significantly stronger balance sheet
Highlights
• Strong growth of operating profit before exceptional
items in the quarter to €1,745 million (Q3 2022: €1,216 million) and an
operating margin of 20.2% (Q3 2022: 16.6%) due to:
o Capacity (ASK) increase of 17.9% on last year (95.6% of Q3 2019), with a
focus over the summer on European holiday destinations and further investment
across the South and North Atlantic, supported by 20 aircraft deliveries year
to date.
o Passenger unit revenue increased by 2.2% year-on-year (24.6% vs 2019) due
to continued strong demand from leisure travel.
o Non-fuel unit costs for the quarter were 3.5% below Q3 2022. This was
despite a c.1.0 percentage point impact from higher disruption across the
business, including the UK NATS systems outage in August. The majority of
these additional costs were in British Airways.
o Fuel unit costs for the quarter were down 6.2% year on year.
• Continued balance sheet strengthening: Gross debt
reduced by €2.4 billion to €17.2 billion at September 30, 2023 versus June
30, 2023, with £2.0 billion UKEF-backed loan repaid early and €0.5 billion
IAG bond repaid on maturity. Consequently S&P upgraded IAG and British
Airways to Investment Grade.
• Overall customer bookings for Q4 are as expected.
• We expect 2023 to be a year of strong recovery in our
margins, operating profit and balance sheet and towards pre-COVID-19 levels of
capacity.
Luis Gallego, International Airlines Group's CEO, said:
"This quarter represents a record third quarter performance for IAG. This is
allowing us to invest in the business and reduce a significant amount of our
debt.
"During the third quarter we saw sustained strong demand across all our
routes, in particular the North and South Atlantic and in all leisure
destinations around Europe. We continue to develop our hubs of Barcelona,
Dublin, London and Madrid, supported by our fleet deliveries and future
orders.
"Our strong financial performance is enabling investment in our people and
allowing us to further improve customer experience. At the same time, we will
keep working towards our sustainability goals.
"We would like to thank all our employees across the Group for their
contribution to this performance."
Financial summary:
( ) Nine months to September 30 Three months to September 30
Reported results (€ million) 2023 2022(1) 2023 2022(1)
Total revenue 22,229 16,680 8,646 7,329
Operating profit 3,005 801 1,745 1,218
Profit after tax 2,151 199 1,230 853
Basic earnings per share (€ cents) 43.6 4.0
Cash, cash equivalents and interest-bearing deposits(2) 9,218 9,599
Borrowings(2) 17,227 19,984
( )
Alternative performance measures (€ million) 2023 2022(1) 2023 2022(1)
Total revenue before exceptional items 22,229 16,680 8,646 7,329
Operating profit before exceptional items 3,005 770 1,745 1,216
Operating margin before exceptional items 13.5% 4.6% 20.2% 16.6%
Profit after tax before exceptional items 2,151 170 1,230 853
Adjusted earnings per share (€ cents) 40.7 0.4
Net debt(2) 8,009 10,385
Net debt to EBITDA before exceptional items (times)(2) 1.4 3.1
Total liquidity(2,3) 13,697 13,999
For definitions of Alternative performance measures, refer to the Alternative
performance measures section of this report.
(1)The 2022 results include a reclassification to conform with the current
period presentation for the Net gain on sale of property, plant and equipment.
There is no impact on the Profit after tax.
(2)The prior period comparative is December 31, 2022.
(3)Total liquidity includes Cash, cash equivalents and interest-bearing
deposits, plus committed and undrawn general and overdraft facilities and
aircraft-specific financing facilities.
Strategic highlights
Trading and network
• Record profit and high margins in the third quarter of
2023, driven by very strong leisure demand across all our airlines
o Aer Lingus total revenue increased by 16% driving strong profit growth and
operating margins of 25.5%, despite cost headwinds. Capacity increased by 15%
across both longhaul and shorthaul over the summer, with the largest longhaul
schedule ever. Next year Aer Lingus will also return to Minneapolis and fly a
new route to Denver. Premium leisure on the transatlantic network was
particularly strong, driving record load factors in business cabins.
o British Airways total revenue grew by 20% in the quarter, on capacity
growth of 25%, in particular through strong leisure demand. Profits increased
by 50% year-on-year as capacity increases drove strong non-fuel unit cost
performance (-7.6%), despite disruption costs. Operating profit was £617
million and the operating margin was 15.3%. Capacity growth focused on
increased frequencies and higher gauge aircraft, as well as rebuilding the
Asian network. British Airways recently announced resumption of flights to Abu
Dhabi in 2024. Further investment in stabilising operations, despite a
challenging external environment and supply chain constraints, and a more
resilient performance expected over the winter.
o Strong trading across the network at Iberia has driven an increase in
total revenue of 19%, with capacity growth of 18% and passenger unit revenue
growth of 5%, with leisure continuing to be strong and corporate travel mainly
recovered to pre-Covid levels. Profit increased by 76% to €449 million and
margins to 23.1%. Continued network investment in the strong and growing Latin
American and Caribbean markets as well as the announcement of the new Doha
route as a gateway to Asia. Transformation initiatives are delivering
exceptional On Time Performance, cost control and better aircraft utilisation
and maintenance.
o Vueling delivered a record operating profit (€282 million) and margin
for the quarter of 26.1%. Transformation initiatives are driving strong
performance across all areas: higher load factors at 94% and ancillary revenue
of €29 per passenger; robust cost control to offset inflationary headwinds;
and On Time Performance 9 percentage points higher than Q3 2019. Vueling is
maintaining capacity at 2019 levels whilst negotiations continue with pilots
towards agreeing a sustainable collective agreement, with a cabin crew
agreement secured earlier in the third quarter.
• Loyalty continued to drive good revenue growth in Q3
2023 as total revenue increased by 57%. The quarter was the highest ever for
Avios issued and redeemed by customers, as well as a record quarter where 1.3
million customers joined IAG programmes. This was supported by the continuing
roll-out of programme enhancements, including a further tranche of
"Avios-only" flights for summer 2024.
• Our Cargo business continues to see declines in
revenue and profit as industry supply continues to exceed reducing demand for
air freight. Cargo yields remain above 2019 levels.
Other developments
o Our balance sheet continues to strengthen as the business returns to
normal levels of profitability.
o Net debt has reduced by €3.1 billion year-on-year to €8.0 billion
(September 30, 2022: €11.1 billion) and leverage was 1.4 times at September
30, 2023 (September 30, 2022: 4.4x).
o We have also reduced our gross debt (September 30, 2023: €17.2 billion;
June 30, 2023: €19.6 billion): in the quarter we repaid our £2 billion
(€2.3 billion) UK Export Finance-backed loan as well as a €500 million IAG
bond.
o S&P has upgraded both IAG and British Airways to Investment Grade
status at BBB- with a stable outlook.
• Our fleet deliveries continue to be on schedule.
During the nine months to September 30, 2023 we have had 20 aircraft delivered
as we replace both our longhaul and shorthaul fleets. This comprised 12
narrowbody aircraft across all our airlines and 8 widebody aircraft to British
Airways and Iberia.
• As announced at our half year results on July 28,
2023, we have also ordered more aircraft for future delivery to support our
network growth strategy: six Boeing 787-10s for British Airways and one Airbus
A350-900 for Iberia.
• We continue to monitor and manage the situation with
regards to metal powder contamination in Pratt & Whitney (P&W) GTF
engines. We currently have 32 aircraft that we consider to be in the scope of
the issues that P&W has raised (less than 10% of IAG's shorthaul fleet)
and are taking steps to mitigate prospective time out of service of those
aircraft over the next three years.
• We have now secured wage agreements with most of our
employee groups, including all Iberia teams and cabin crew at Aer Lingus,
British Airways and Vueling. Our proposal to British Airways pilots is
currently subject to a ballot having been recommended by BALPA. Discussions
are ongoing with pilots at Vueling; and with pilots and maintenance teams at
Aer Lingus.
Trading outlook
• We expect full year 2023 capacity to be around 96% of
pre-COVID-19 levels.
• Overall customer bookings for Q4 are as expected with
around 75% of the fourth quarter's passenger revenue already booked.
• Whilst we maintain good forward bookings, we continue
to be mindful of wider macroeconomic and geopolitical uncertainties that might
affect the remainder of this year.
• We expect non-fuel unit costs for the full year 2023
to be at the lower end of previous guidance of 6% - 10% improvement on full
year 2022, due to the higher level of disruption.
• At current fuel prices* and taking into consideration
the 73% of hedging we have in place for the fourth quarter, total fuel costs
would be c€7.6 billion for the full year.
• We expect to generate sustainable free cash flow this
year and for our net debt at December 31, 2023 to reflect the usual seasonal
increase in the fourth quarter.
*Jet fuel forward prices as at October 26,
2023
LEI: 959800TZHQRUSH1ESL13
Forward-looking statements:
Certain statements included in this announcement are forward-looking. These
statements can be identified by the fact that they do not relate only to
historical or current facts. By their nature, they involve risk and
uncertainties because they relate to events and depend on circumstances that
will occur in the future. Actual results could differ materially from those
expressed or implied by such forward-looking statements.
Forward-looking statements often use words such as "expects", "may", "will",
"could", "should", "intends", "plans", "predicts", "envisages" or
"anticipates" or other words of similar meaning. They include, without
limitation, any and all projections relating to the results of operations and
financial conditions of International Consolidated Airlines Group, S.A. and
its subsidiary undertakings from time to time (the 'Group'), as well as plans
and objectives for future operations, expected future revenues, financing
plans, expected expenditure, acquisitions and divestments relating to the
Group and discussions of the Group's business plans. All forward-looking
statements in this announcement are based upon information known to the Group
on the date of this announcement and speak as of the date of this
announcement. Other than in accordance with its legal or regulatory
obligations, the Group does not undertake to update or revise any
forward-looking statement to reflect any changes in events, conditions or
circumstances on which any such statement is based.
Actual results may differ from those expressed or implied in the
forward-looking statements in this announcement as a result of any number of
known and unknown risks, uncertainties and other factors, including, but not
limited to, the current economic and geopolitical environment and ongoing
recovery from the COVID-19 pandemic and uncertainties about its future impact
and duration, many of which are difficult to predict and are generally beyond
the control of the Group, and it is not reasonably possible to itemise each
item. Accordingly, readers of this announcement are cautioned against relying
on forward-looking statements. Further information on the primary risks of the
business and the Group's risk management process is set out in the Risk
management and principal risk factors section in the Annual report and
accounts 2022; this document is available on www.iairgroup.com. All
forward-looking statements made on or after the date of this announcement and
attributable to IAG are expressly qualified in their entirety by the primary
risks set out in that section. Many of these risks are, and will be,
exacerbated by the ongoing recovery from the COVID-19 pandemic and
uncertainties about its future impact and duration and any further disruption
to the global airline industry as well as the current economic and
geopolitical environment.
Alternative Performance Measures:
This announcement contains, in addition to the financial information prepared
in accordance with International Financial Reporting Standards ('IFRS') and
derived from the Group's financial statements, alternative performance
measures ('APMs') as defined in the Guidelines on alternative performance
measures issued by the European Securities and Markets Authority (ESMA) on
October 5, 2015. The performance of the Group is assessed using a number of
APMs. These measures are not defined under IFRS, should be considered in
addition to IFRS measurements, may differ to definitions given by regulatory
bodies relevant to the Group and may differ to similarly titled measures
presented by other companies. They are used to measure the outcome of the
Group's strategy based on 'Unrivalled customer proposition', 'Value accretive
and sustainable growth' and 'Efficiency and innovation'. For definitions and
explanations of APMs, refer to the Alternative Performance Measures section of
this report and to the APMs section in the most recent published financial
report and in the IAG Annual report and accounts; these documents are
available on www.iairgroup.com.
IAG Investor Relations
Waterside (HAA2),
PO Box 365,
Harmondsworth,
Middlesex,
UB7 0GB
Investor.relations@iairgroup.com
CONSOLIDATED INCOME STATEMENT
Nine months to September 30 Three months to September 30
€ million 2023 2022(1) Higher/ 2023 2022(1) Higher/
(lower) (lower)
Passenger revenue 19,517 14,020 39.2 % 7,733 6,416 20.5 %
Cargo revenue 866 1,216 (28.8)% 263 373 (29.5)%
Other revenue 1,846 1,444 27.8 % 650 540 20.4 %
Total revenue 22,229 16,680 33.3 % 8,646 7,329 18.0 %
Employee costs 3,985 3,417 16.6 % 1,375 1,250 10.0 %
Fuel, oil costs and emissions charges 5,579 4,400 26.8 % 2,029 1,834 10.6 %
Handling, catering and other operating costs 2,891 2,143 34.9 % 1,095 821 33.4 %
Landing fees and en-route charges 1,762 1,391 26.7 % 658 544 21.0 %
Engineering and other aircraft costs 1,862 1,507 23.6 % 654 579 13.0 %
Property, IT and other costs 788 670 17.6 % 273 235 16.2 %
Selling costs 851 671 26.8 % 273 229 19.2 %
Depreciation, amortisation and impairment 1,508 1,531 (1.5)% 525 516 1.7 %
Net (gain)/loss on sale of property, plant and equipment (15) (31) (51.6)% 2 (10) nm
Currency differences 13 180 (92.8)% 17 113 (85.0)%
Total expenditure on operations 19,224 15,879 21.1 % 6,901 6,111 12.9 %
Operating profit 3,005 801 nm 1,745 1,218 43.3 %
Finance costs (867) (723) 19.9 % (302) (243) 24.3 %
Finance income 285 11 nm 118 8 nm
Net change in fair value of financial instruments - 132 nm 13 2 nm
Net financing credit relating to pensions 77 19 nm 26 6 nm
Net currency retranslation credits/(charges) 64 (305) nm (85) (108) (21.3)%
Other non-operating credits 51 231 (77.9)% 63 126 (50.0)%
Total net non-operating costs (390) (635) (38.6)% (167) (209) (20.1)%
Profit before tax 2,615 166 nm 1,578 1,009 56.4 %
Tax (464) 33 nm (348) (156) nm
Profit after tax for the period 2,151 199 nm 1,230 853 44.2 %
(1)The 2022 results include a reclassification to conform with the current
period presentation for the Net gain on sale of property, plant and equipment
within Operating profit. Accordingly, for the nine month and three month
periods to September 30, 2022, the Group has reclassified €31 million and
€10 million, respectively, of gains from Other non-operating credits to
Expenditure on operations. There is no impact on the Profit after tax.
ALTERNATIVE PERFORMANCE MEASURES
All figures in the tables below are before exceptional items. Refer to
Alternative performance measures section for further detail.
Nine months to September 30 Three months to September 30
Before exceptional items Before exceptional items
€ million 2023 2022(1) Higher/ 2023 2022(1) Higher/
(lower) (lower)
Passenger revenue 19,517 14,020 39.2 % 7,733 6,416 20.5 %
Cargo revenue 866 1,216 (28.8)% 263 373 (29.5)%
Other revenue 1,846 1,444 27.8 % 650 540 20.4 %
Total revenue 22,229 16,680 33.3 % 8,646 7,329 18.0 %
Employee costs 3,985 3,417 16.6 % 1,375 1,250 10.0 %
Fuel, oil costs and emissions charges 5,579 4,400 26.8 % 2,029 1,834 10.6 %
Handling, catering and other operating costs 2,891 2,143 34.9 % 1,095 821 33.4 %
Landing fees and en-route charges 1,762 1,391 26.7 % 658 544 21.0 %
Engineering and other aircraft costs 1,862 1,507 23.6 % 654 579 13.0 %
Property, IT and other costs 788 693 13.7 % 273 235 16.2 %
Selling costs 851 671 26.8 % 273 229 19.2 %
Depreciation, amortisation and impairment 1,508 1,539 (2.0)% 525 518 1.4 %
Net (gain)/loss on sale of property, plant and equipment (15) (31) (51.6)% 2 (10) nm
Currency differences 13 180 (92.8)% 17 113 (85.0)%
Total expenditure on operations 19,224 15,910 20.8 % 6,901 6,113 12.9 %
Operating profit 3,005 770 nm 1,745 1,216 43.5 %
Finance costs (867) (723) 19.9 % (302) (243) 24.3 %
Finance income 285 11 nm 118 8 nm
Net change in fair value of financial instruments - 132 nm 13 2 nm
Net financing credit relating to pensions 77 19 nm 26 6 nm
Net currency retranslation credits/(charges) 64 (305) nm (85) (108) (21.3)%
Other non-operating credits 51 231 (77.9)% 63 126 (50.0)%
Total net non-operating costs (390) (635) (38.6)% (167) (209) (20.1)%
Profit before tax 2,615 135 nm 1,578 1,007 56.7 %
Tax (464) 35 nm (348) (154) nm
Profit after tax for the period 2,151 170 nm 1,230 853 44.2 %
( )Operating figures 2023 2022(1) Higher/ 2023 2022(1) Higher/
(lower) (lower)
Available seat kilometres (ASK million) 242,293 192,544 25.8 % 88,259 74,834 17.9 %
Revenue passenger kilometres (RPK million) 208,079 156,624 32.9 % 78,494 65,078 20.6 %
Seat factor (per cent) 85.9 81.3 4.6pts 88.9 87.0 1.9pts
Passenger numbers (thousands) 87,548 69,504 26.0 % 33,241 29,535 12.5 %
Cargo tonne kilometres (CTK million) 3,362 2,890 16.3 % 1,138 951 19.7 %
Sold cargo tonnes (thousands) 439 407 7.9 % 145 132 9.8 %
Sectors 538,413 456,837 17.9 % 196,377 179,469 9.4 %
Block hours (hours) 1,605,694 1,308,318 22.7 % 587,584 511,599 14.9 %
Aircraft in service 573 552 3.8 % n/a n/a n/a
Passenger revenue per RPK (€ cents) 9.38 8.95 4.8 % 9.85 9.86 (0.1)%
Passenger revenue per ASK (€ cents) 8.06 7.28 10.6 % 8.76 8.57 2.2 %
Cargo revenue per CTK (€ cents) 25.76 42.08 (38.8)% 23.11 39.22 (41.1)%
Fuel cost per ASK (€ cents) 2.30 2.29 0.8 % 2.30 2.45 (6.2)%
Non-fuel costs per ASK (€ cents) 5.63 5.98 (5.8)% 5.52 5.72 (3.5)%
Total cost per ASK (€ cents) 7.93 8.26 (4.0)% 7.82 8.17 (4.3)%
(1)The 2022 results include a reclassification to conform with the current
period presentation for the Net gain on sale of property, plant and equipment
within Operating profit. Accordingly, for the nine month and three month
periods to September 30, 2022, the Group has reclassified €31 million and
€10 million, respectively, of gains from Other non-operating credits to
Expenditure on operations. There is no impact on the Profit after tax.
Developments since the last report (July 28, 2023).
On August 23, 2023, the Group extended the availability period for $1.655
billion of its $1.755 billion Revolving Credit Facility, which is available to
British Airways, Iberia and Aer Lingus. Following the extension, $1.755
billion will be available to March 2025 and then $1.655 billion available to
March 2026. At September 30, 2023 the facility remained undrawn.
On September 28, 2023, British Airways repaid its syndicated loan of £2.0
billion (€2.3 billion), which was partially guaranteed by UK Export Finance
(UKEF). At the same time, British Airways entered into a new 5-year Export
Development Guarantee Facility of £1.0 billion (€1.2 billion), with
commitments from a syndicate of banks, partially guaranteed by UKEF, and
available through to September 2028. The new facility is in addition to the
£1.0 billion Export Development Guarantee Facility, which was entered into in
2021 and which is available through to November 2026. Both facilities were
undrawn at September 30, 2023.
Basis of preparation
At September 30, 2023, the Group had total liquidity of €13,697 million,
comprising cash, cash equivalents and interest-bearing deposits of €9,218
million and €4,479 million of committed and undrawn general and overdraft
facilities.
In its assessment of going concern over the period of at least 12 months from
the date of approval of this report (the 'going concern period'), the Group
has prepared extensive modelling, including considering a plausible but severe
downside scenario. Having reviewed these scenarios, the Directors have a
reasonable expectation that the Group has sufficient liquidity to continue in
operational existence over the going concern period and hence continue to
adopt the going concern basis in preparing this interim management statement
for the nine months to September 30, 2023.
Principal risks and uncertainties
The Group has continued to maintain its framework and processes to identify,
assess and manage risks. The Group monitors the evolution of the risk
landscape and internal and external changes, particularly considering how
risks combine to create increased threats, re-assessing the potential severity
and likelihood accordingly.
In assessing its principal risks, the Group has considered operational
resilience, supply chain risk, the status of the financial markets and demand,
political risk and government intervention, pace of transformation,
particularly IT, the industrial relations landscape and people engagement and
cultural change across the Group. No new principal risks were identified
through the risk management discussions and assessments across the business
and the principal risks and uncertainties affecting the Group, detailed in the
Risk management and principal risk factors section of the 2022 Annual report
and accounts, remain relevant at the date of this report. However, the profile
of certain risks has changed over the past nine months. These include the
Group's exposure and ability to directly manage the external risk environment,
particularly for aircraft, engines and component availability, which remains a
challenge, given the fundamental weaknesses in the resilience of the aviation
sector's supply chain. Other external threats which remain heightened include:
the impact of inflation on demand and customer confidence; higher costs in the
supply chain; the impact of escalating and ongoing geopolitical tensions and
conflict in various regions, in particular the Middle East; air traffic
control (ATC) resilience issues and industrial unrest impacting operations;
and policy measures taken by governments to address the economic environment
or policy proposals that could impact the Group's airlines' ability to set
capacity and/or pricing. Further detail on the changes in the risk environment
including management's responses are provided below. Management remains
focused on mitigating risks at all levels in the business and investing to
increase resilience.
The Board reviews and challenges management on the risk landscape and its
management in the light of changes that influence the Group and the aviation
industry. Where further action has been required, the Board has considered
potential mitigations and, where appropriate or feasible, the Group has
implemented or confirmed plans that would address those risks or retain them
within the Board's determined Group risk appetite. In addition, the Board and
its sub committees have been appraised of regulatory, competitor and
governmental responses on an ongoing basis.
From the risks identified in the 2022 Annual report and accounts, given the
current environment, the main risks that continue to be a key area of focus,
due to their potential implications for the Group, are outlined below.
• Brand and customer trust. Operational resilience and customer
satisfaction underpin customer trust. Reliability, including on-time
performance, service and product delivery, are key elements of brand value and
of each customer's experience. The Group continues to improve its disruption
management capabilities given the extent of external disruption due to ATC
resilience issues because of staff shortages and/or industrial unrest. All of
the Group's airlines continue to support their customers through any
disruption including schedule adaptions where required. They are also
enhancing cabin and service propositions to help ensure that our customers
choose to fly with the Group's airlines.
• Critical third parties in the supply chain. The aviation sector
continues to be affected by global supply chain disruption which has impacted
aircraft deliveries, component availability, resource availability and/or
threat of employee industrial action in critical third parties and airport
services, airports' resilience weaknesses, particularly London Heathrow, and
ATC restrictions and strikes. Delays in new aircraft and spare engine
availability continue to impact operations and increase turnaround times for
aircraft. The Group proactively assesses its schedules for operability and
continues to work with all critical suppliers to understand any potential
disruption within their supply chains from either a shortage of available
resource, strike action or production delays which could impact the
availability of new fleet, engines or critical goods or services.
• Cyber attack and data security. The threat of sophisticated
ransomware attacks on critical infrastructure and services remains high with
the Group exposed to threat actors targeting both the Group's operating
companies and its suppliers. The Group continues to improve its cyber security
posture either through major IT transformational change or additional
monitoring through tools as well as better understanding the risk presented by
its suppliers.
• Economic, political and regulatory environment. The economic
impact of increases in commodity and wage costs has driven significant
inflation and impacted on interest rates as governments seek to moderate
inflation, which may result in demand softening. As interest rate increases
start to materially pass through to customers for their personal debt, they
may need to reduce their spend on travel to accommodate the increase in their
cost of borrowing. Recent European governments' proposals to set floor or
ceiling caps on pricing may impact the ability to freely set pricing and/or
capacity.
• IT systems and IT infrastructure. The Group is reliant upon the
resilience of its systems for key customer and business processes and is
exposed to risks that relate to poor performance, obsolescence or failure of
these systems. The Group continues with major programmes and upgrades to
modernise, including new commercial capabilities and customer centric
enhancements using agile based models, as well as replacing core IT
infrastructure and improving network connectivity and redundancy. Mitigating
actions that prioritise operational stability and resilience have been built
into all cutover plans for the go-live of IT systems related changes.
• Operational resilience. Ongoing labour shortages, particularly for
engineers, industrial unrest and strike action in the aviation sector,
shortages in the supply chain and airspace and ATC restrictions can all impact
the operational environment of the Group's airlines as well as the operations
of the businesses on which the Group relies. The Group continues with its
ambitious IT infrastructure transformation agenda to modernise and digitalise
its IT estates. The Group is focused on minimising any unplanned outages or
disruption to customers with additional resilience built into the airlines'
networks.
• People, culture and employee relations. Our people, their
engagement and cultural appetite and mindset for change are critical to the
Group's current performance and future success. Our leadership recognises the
efforts of our staff and their commitment through the continued operational
challenges facing our airlines. Our businesses continue to build the knowledge
and experience of their new starters and manage the cultural impacts of
onboarding at scale to ensure they have the right capabilities to operate.
Shortages of licensed engineers with aircraft experience across the aviation
sector and in the Group's airlines combined with aircraft, engines and
component shortages are significantly impacting maintenance delivery timelines
and may challenge morale. The Group is investing in apprenticeship programmes
and retention initiatives to help secure and train engineers. Across the
Group, collective bargaining is in place with various unions. Where agreements
are open, our operating companies continue to engage in discussions with
unions to secure sustainable agreements and address concerns arising within
the negotiations.
• Sustainable aviation. The plan to decarbonise aviation has
resulted in fragmentation of policy measures and support offered by
governments for green initiatives across the different regions in which the
Group airlines operate. As Sustainable Aviation Fuel (SAF) infrastructure and
availability still lags demand, mandates and other tax-based measures may
disproportionately impact the Group's airlines versus their competitors.
Operating and market environment
The average jet fuel spot price for the first nine months of 2023 was $873 per
metric tonne, 22 per cent lower than the average spot price of $1,118 per
metric tonne in the same period in 2022. Prices were volatile over the course
of the first nine months of 2023, falling from a peak of $1,142 per metric
tonne in January to $769 per metric tonne at the end of June, and then rising
again to reach $1,055 per metric tonne at the end of September. In 2022, the
shape of price movements was markedly different, with fuel prices rising
significantly from late February, following the outbreak of the war in
Ukraine; prices rose from $708 per metric tonne at the start of January to
$1,236 per metric tonne at the end of June 2022 and then fell to $965 per
metric tonne at the end of September.
The average foreign exchange rates for the first nine months of 2023 resulted
in the US dollar weakening by 1 per cent against the euro and strengthening by
3 per cent against the pound sterling, compared with the average of the first
nine months of 2022. The closing foreign exchange rates, applied for balance
sheet translations, were close to those at December 31, 2022, with the US
dollar weakening by 1 per cent against the euro and 2 per cent against the
pound sterling since December 31, 2022.
The net impact of transaction and translation exchange for the Group for the
nine months of 2023 was €50 million favourable versus the first nine months
of 2022, with the net impact €54 million adverse in quarter 1, €69 million
favourable in quarter 2 and €35 million favourable in quarter 3.
From a transactional perspective, the Group's financial performance is
impacted by fluctuations in exchange rates, primarily from the US dollar, euro
and pound sterling. The Group generates a surplus in most currencies in which
it does business, except for the US dollar, as capital expenditure, debt
repayments and fuel purchases typically create a deficit. The Group hedges a
portion of its transaction exposures. The net transaction impact on the
operating result was favourable by €81 million for the first nine months,
increasing revenues by €65 million and reducing costs by €16 million, with
the impact €48 million adverse in quarter 1, €93 million favourable in
quarter 2 and €36 million favourable in quarter 3.
IAG's results are impacted by exchange rates used for the translation of
British Airways' and IAG Loyalty's financial results from pound sterling to
the Group's reporting currency of euro. For the nine months, the net impact of
translation was €31 million adverse versus the first nine months of 2022,
with the impact €6 million adverse in quarter 1, €24 million adverse in
quarter 2 and €1 million adverse in quarter 3.
Unless stated otherwise, all variances quoted below compare the first nine
months of 2023 with the first nine months of 2022 on a reported basis
(including exceptional items). Results for 2022 include a reclassification to
conform with the 2023 presentation for Net gain on sale of property, plant and
equipment within Operating profit, with €31 million of gains in 2022
reclassified from Other non-operating credits to Expenditure on operations.
Capacity and passenger traffic
The Group continued to restore its passenger capacity, following the
significant reductions due to COVID-19, with passenger capacity now close to
that of 2019. In the first nine months of 2023, IAG capacity, measured in
available seat kilometres (ASKs), was 25.8 per cent higher than in the first
nine months of 2022, which was impacted by the Omicron variant of COVID-19,
particularly in January and February. Passenger capacity was only 5.3 per cent
lower than in the first nine months of 2019. Passenger load factor for the
nine months was 85.9 per cent, up 4.6 points on the previous year and 1.2
points higher than in the first nine months of 2019.
Summary of passenger capacity and load factor by region
ASKs higher/(lower) Passenger load factor
Nine months to September 30, 2023 vs 2022 vs 2019 higher/(lower) higher/(lower)
(%) vs 2022 vs 2019
Domestic 8.9% 8.3% 89.8 4.4 pts 2.0 pts
Europe 17.6% (5.1%) 86.5 5.0 pts 2.7 pts
North America 27.8% 3.1% 83.6 5.0 pts (0.4) pts
Latin America and Caribbean 17.4% (3.9%) 88.2 4.0 pts 1.6 pts
Africa, Middle East and South Asia 41.6% 2.1% 83.6 3.1 pts 0.5 pts
Asia Pacific nm (60.4%) 89.3 7.2 pts 3.7 pts
Total network 25.8% (5.3%) 85.9 4.6 pts 1.2 pts
As can be seen in the table above, the remaining capacity shortfall to 2019 is
principally attributable to the pace of capacity restoration in the Asia
Pacific region, linked to the late lifting of COVID-19 restrictions. The Group
has increased its schedule to the region during 2023. British Airways services
to Shanghai and Beijing resumed in the summer travel season and the airline
has increased frequencies to Hong Kong and Tokyo Haneda.
Revenue
Passenger revenue rose €5,497 million from the first nine months of 2022 to
€19,517 million, reflecting the 25.8 per cent increase in capacity operated,
together with the positive impact of the 4.6 point increase in the passenger
load factor and passenger yields per revenue passenger kilometre (RPK) up 4.8
per cent. The resulting passenger unit revenue (passenger revenue per ASK) was
10.6 per cent higher than the previous year and 20.6 per cent higher than the
first nine months of 2019. Leisure traffic performed particularly strongly,
with corporate traffic continuing to recover more slowly.
Cargo revenue was down €350 million versus the previous year to €866
million. Cargo carried, measured in cargo tonne kilometres (CTKs), rose by
16.3 per cent. Yields were 38.8 per cent lower than in the previous year,
reflecting the substantial increase in global passenger airline capacity
across the industry and the impact of market demand decline due to the change
in macro-economic conditions. Cargo revenue was up €41 million, or 5.0 per
cent, versus the first nine months of 2019, with cargo yields up 29.5 per cent
versus 2019, despite weaker market demand and reduced cargo capacity from the
Asia Pacific region.
Other revenue increased by €402 million to €1,846 million, reflecting the
growth of IAG Loyalty and the recovery in Iberia's third-party maintenance
business and BA Holidays. Other revenue was 32.9 per cent higher than in the
first nine months of 2019.
Costs
Costs were impacted by the 25.8 increase in capacity versus 2022, with Total
expenditure on operations 21.1 per cent higher than the previous year and
non-fuel costs per ASK down 5.8 per cent.
Employee costs increased by €568 million versus the first nine months of
2022 to €3,985 million, reflecting the increase in airline operations and
the related increase in employee numbers, together with pay increases. On a
unit basis per ASK, Employee costs were down 7.3 per cent.
Fuel, oil costs and emissions charges increased by €1,179 million to
€5,579 million, principally reflecting the impact of the higher capacity
operated. The significant increase in commodity fuel prices in the first nine
months of 2022 was mitigated by hedging gains from hedging placed when the
fuel prices were lower in 2021 and previously, whereas in the first nine
months of 2023 there was a small net cost of hedging, due to the sustained
increase in fuel prices since the start of 2022. The net result was that on a
unit basis per ASK, Fuel, oil costs and emissions charges were up 0.8 per
cent. Fuel costs continue to benefit from the Group's investment in new, more
fuel-efficient aircraft.
Supplier costs increased by €1,605 million to €8,167 million, mainly
linked to the increase in capacity operated, together with inflationary
increases and disruption costs, partly offset by the Group's procurement
initiatives. On a unit basis per ASK, Supplier costs were down 1.4 per cent.
Depreciation, amortisation and impairment costs for the first nine months were
€1,508 million and the Net gain from the sale of property, plant and
equipment was €15 million, reflecting the disposal of aircraft withdrawn
from service and related spare parts. On a unit basis per ASK, Ownership costs
(which include Depreciation, amortisation and impairment costs, and the Net
gain from the sale of property, plant and equipment) were down 21.3 per cent.
Operating result
The Group's operating profit for the nine month period was €3,005 million,
an improvement of €2,204 million versus the operating profit of €801
million for the first nine months of 2022. Excluding exceptional items, the
operating result improved €2,235 million versus the first nine months of
2022.
The breakdown of the operating result between the Group's main operating
companies, for the nine months and quarter 3, is shown below.
Nine months to September 30
2023 higher/(lower) % of 2019 capacity
Operating profit/(loss) before exceptional items, € million, and passenger 2023 2022(1) 2019(2) vs 2019(2) (ASKs) operated
capacity (ASKs)
vs 2022(1)
British Airways 1,320 46 1,567 1,274 (247) 89.6
Iberia 821 257 382 564 439 100.9
Vueling 378 201 235 177 143 106.2
Aer Lingus 236 56 247 180 (11) 103.4
IAG Loyalty 249 215 148 34 101 n/a
Other Group companies 1 (5) (78) 6 79 n/a
Total Group 3,005 770 2,501 2,235 504 94.7
Three months to September 30
2023 higher/(lower) % of 2019 capacity
Operating profit/(loss) before exceptional items, € million, and passenger 2023 2022(1) 2019(2) vs 2022(1) vs 2019(2) (ASKs) operated
capacity (ASKs)
British Airways 718 482 710 236 8 92.4
Iberia 449 255 264 194 185 99.0
Vueling 282 259 230 23 52 101.9
Aer Lingus 196 139 169 57 27 103.1
IAG Loyalty 89 63 50 26 39 n/a
Other Group companies 11 18 (10) (7) 21 n/a
Total Group 1,745 1,216 1,413 529 332 95.6
(1)Figures for 2022 restated for change in classification of the Net gain on
sale of property, plant and equipment within Operating profit to conform with
the 2023 presentation.
(2)Figures for 2019 adjusted for impact of change to accounting for pension
administration costs for British Airways in 2021 and the change in
classification of Net gain on sale of property, plant and equipment within
Operating profit to conform with the 2023 presentation.
Restoration of capacity in British Airways has been lower than in the other
operating companies, reflecting the retirement of British Airways' Boeing
747-400 fleet in its response to the COVID-19 pandemic and the slower
restoration of capacity in the Asia Pacific region. Both Iberia and Vueling
have performed strongly in the first nine months of 2023, with operating
profit before exceptional items exceeding that achieved in 2019. IAG Loyalty
continues to increase its base of collectors of the Group's loyalty currency,
Avios, with its operating profit for the nine months significantly increased
versus the same period in 2019.
Exceptional items
There were no exceptional items in the first nine months of 2023. In the first
nine months of 2022, the Group recorded an exceptional credit of €23
million, relating to the partial reversal of a fine previously issued by the
European Commission, in 2010, to British Airways, and an exceptional credit of
€8 million reflecting the partial reversal of aircraft impairments made in
2020. See Alternative performance measures section for further information.
Net non-operating costs, taxation and profit after tax
The Group's net non-operating costs for the first nine months of 2023 were
€390 million, compared with €635 million in the first nine months of 2022,
mainly reflecting: net finance costs of €582 million, down €130 million,
driven by the significant increase in interest received on deposits, net of
increases in finance costs, linked to rising interest rates; €64 million of
Net currency retranslation credits in 2023, versus charges of €305 million
in 2022; no net change in the fair value of financial instruments, versus a
credit of €132 million in 2022, principally due to changes in the
mark-to-market of the IAG €825 million convertible bond, which is held at
fair value; and other non-operating credits of €51 million in 2023 versus
credits of €231 million in 2022, mainly related to fair value movements on
derivatives for which hedge accounting is not applied.
The tax charge on the profit for the period was €464 million (2022: tax
credit of €33 million), and the effective tax rate was 18 per cent (2022:
negative 20 per cent).
The substantial majority of the Group's activities are taxed where the main
operations are based: in the UK, Spain and Ireland, which have corporation tax
rates during 2023 of 23.5 per cent, 25 per cent and 12.5 per cent,
respectively. The expected tax rate for the Group is determined by applying
the relevant corporation tax rate to the profits or losses of each
jurisdiction. The geographical distribution of profits and losses in the Group
results in the expected tax rate being 23 per cent for the nine months to
September 30, 2023. The difference between the actual effective tax rate of 18
per cent and the expected tax rate of 23 per cent is primarily due to the
partial recognition of previously unrecognised deferred tax assets in the
Group's Spanish companies.
The profit after tax for the first nine months of 2023 was €2,151 million
(2022: €199 million).
Cash, debt and liquidity
The Group's cash balance (defined as cash, cash equivalents and current
interest-bearing deposits) of €9,218 million at September 30, 2023 was down
€381 million on December 31, 2022, mainly driven by repayments of debt
described further below.
During the nine months, the Group took delivery of 20 aircraft and drew
financing for 19 aircraft as set down below.
Number of aircraft Delivered in the nine months to September 30, 2023 Of which financed in the nine months to September 30, 2023 Aircraft delivered in 2022 and financed in 2023
Airbus A320neo (British Airways) 1 1 2
Airbus A320neo (Iberia) 2 - -
Airbus A320neo (Aer Lingus) 1 1 -
Airbus A321neo (Iberia) 4 2 -
Airbus A321neo (Vueling) 4 4 -
Airbus A350-900 (Iberia) 3 2 -
Airbus A350-1000 (British Airways) 3 2 3
Boeing 787-10 (British Airways) 2 2 -
Total 20 14 5
The five aircraft for British Airways delivered in 2022 and financed in 2023
had financing secured but undrawn at December 31, 2022, which was reported
within committed and undrawn aircraft financing facilities. The Group
continues to have a number of options available to it to finance its
deliveries of aircraft.
The Group's total borrowings at September 30, 2023 were €17,227 million,
down €2,757 million from December 31, 2022. The reduction was mainly due to
the Group's repayments of debt, including the early repayment of British
Airways' £2.0 billion (€2.3 billion) loan partially guaranteed by UKEF and
an IAG unsecured bond of €500 million, which was redeemed at its maturity on
July 4, 2023.
Net debt (total borrowings less cash, cash equivalents and current
interest-bearing deposits) was €8,009 million at September 30, 2023, a
reduction of €2,376 million since December 31, 2022, mainly due to the
increase in cash outlined above, driven by the profitability in the first nine
months, inflows of forward bookings for future travel, partially offset by
capital expenditure and net interest. The normal seasonal pattern of cash
flows typically results in an increase in net debt in the final quarter of the
year.
The Group's EBITDA before exceptional items for the rolling four quarters to
September 30, 2023 was €5,529 million. Net debt to EBITDA before exceptional
items was 1.4 times at September 30, 2023. See Alternative performance
measures section for further information.
Total liquidity at September 30, 2023 was €13,697 million, down €302
million from €13,999 million at December 31, 2022, linked to the Group's
debt repayments net of cash generation in the first nine months of 2023.
Committed and undrawn general and overdraft facilities were €4,479 million
(December 31, 2022: €3,284 million), with the increase mainly reflecting the
new £1.0 billion (€1.2 billion) British Airways facility outlined above;
there were no committed and undrawn aircraft specific facilities (December 31,
2022: €1,116 million).
ALTERNATIVE PERFORMANCE MEASURES
The performance of the Group is assessed using a number of alternative
performance measures (APMs), some of which have been identified as key
performance indicators of the Group. These measures are not defined under
International Financial Reporting Standards (IFRS), should be considered in
addition to IFRS measurements, may differ to definitions given by regulatory
bodies applicable to the Group and may differ to similarly titled measures
presented by other companies. They are used to measure the outcome of the
Group's strategy based on 'Unrivalled customer proposition', 'Value accretive
and sustainable growth' and 'Efficiency and innovation'.
During the nine months to September 30, 2023, the Group has made no changes to
its pre-existing disclosures and treatments of APMs compared to those
disclosed in the Annual Report and Accounts for the year to December 31, 2022.
The definition of each APM, together with a reconciliation to the nearest
measure prepared in accordance with IFRS is presented below.
a Profit after tax before exceptional items
Exceptional items are those that in the Board's and management's view need to
be separately disclosed by virtue of their size or incidence to supplement the
understanding of the entity's financial performance. The Management Committee
of the Group uses financial performance on a pre-exceptional basis to evaluate
operating performance and to make strategic, financial and operational
decisions, and externally because it is widely used by security analysts and
investors in evaluating the performance of the Group between reporting periods
and against other companies.
While there have been no exceptional items recorded in the nine months to
September 30, 2023, exceptional items in the nine months to September 30, 2022
include: significant changes in the long-term fleet plans that result in the
reversal of impairment of fleet assets and legal re-imbursements.
The table below reconciles the statutory Income statement to the Income
statement before exceptional items of the Group:
Nine months to September 30
€ million Statutory 2023 Exceptional items Before exceptional items 2023 Statutory 2022(1) Exceptional items Before exceptional items 2022
Passenger revenue 19,517 - 19,517 14,020 - 14,020
Cargo revenue 866 - 866 1,216 - 1,216
Other revenue 1,846 - 1,846 1,444 - 1,444
Total revenue 22,229 - 22,229 16,680 - 16,680
Employee costs 3,985 - 3,985 3,417 - 3,417
Fuel, oil costs and emissions charges 5,579 - 5,579 4,400 - 4,400
Handling, catering and other operating costs 2,891 - 2,891 2,143 - 2,143
Landing fees and en-route charges 1,762 - 1,762 1,391 - 1,391
Engineering and other aircraft costs 1,862 - 1,862 1,507 - 1,507
Property, IT and other costs(2) 788 - 788 670 (23) 693
Selling costs 851 - 851 671 - 671
Depreciation, amortisation and impairment(3) 1,508 - 1,508 1,531 (8) 1,539
Net gain on sale of property, plant and equipment (15) - (15) (31) - (31)
Currency differences 13 - 13 180 - 180
Total expenditure on operations 19,224 - 19,224 15,879 (31) 15,910
Operating profit 3,005 - 3,005 801 31 770
Finance costs (867) - (867) (723) - (723)
Finance income 285 - 285 11 - 11
Net change in fair value of financial instruments - - - 132 - 132
Net financing credit relating to pensions 77 - 77 19 - 19
Net currency retranslation charges 64 - 64 (305) - (305)
Other non-operating credits 51 - 51 231 - 231
Total net non-operating costs (390) - (390) (635) - (635)
Profit before tax 2,615 - 2,615 166 31 135
Tax (464) - (464) 33 (2) 35
Profit after tax for the period 2,151 - 2,151 199 29 170
Three months to September 30
€ million Statutory 2023 Exceptional items Before exceptional items 2023 Statutory 2022(1) Exceptional items Before exceptional items 2022
Passenger revenue 7,733 - 7,733 6,416 - 6,416
Cargo revenue 263 - 263 373 - 373
Other revenue 650 - 650 540 - 540
Total revenue 8,646 - 8,646 7,329 - 7,329
Employee costs 1,375 - 1,375 1,250 - 1,250
Fuel, oil costs and emissions charges 2,029 - 2,029 1,834 - 1,834
Handling, catering and other operating costs 1,095 - 1,095 821 - 821
Landing fees and en-route charges 658 - 658 544 - 544
Engineering and other aircraft costs 654 - 654 579 - 579
Property, IT and other costs 273 - 273 235 - 235
Selling costs 273 - 273 229 - 229
Depreciation, amortisation and impairment(3) 525 - 525 516 (2) 518
Net loss/(gain) on sale of property, plant and equipment 2 - 2 (10) - (10)
Currency differences 17 - 17 113 - 113
Total expenditure on operations 6,901 - 6,901 6,111 (2) 6,113
Operating profit 1,745 - 1,745 1,218 2 1,216
Finance costs (302) - (302) (243) - (243)
Finance income 118 - 118 8 - 8
Net change in fair value of financial instruments 13 - 13 2 - 2
Net financing credit relating to pensions 26 - 26 6 - 6
Net currency retranslation charges (85) - (85) (108) - (108)
Other non-operating credits 63 - 63 126 - 126
Total net non-operating costs (167) - (167) (209) - (209)
Profit before tax 1,578 - 1,578 1,009 2 1,007
Tax (348) - (348) (156) (2) (154)
Profit after tax for the period 1,230 - 1,230 853 - 853
(1) The 2022 results include a reclassification to confirm with the current
period presentation for the Net gain on sale of property, plant and equipment.
Accordingly, for the nine month and three month periods to September 30, 2022,
the Group has reclassified €31 million and €10 million, respectively, of
gains from Other non-operating credits to Net (gain)/loss on sale of property,
plant and equipment within Operating expenses. There is no impact on the
Profit after tax.
The rationale for each exceptional item is given below.
(2) Partial reversal of historical fine
The exceptional credit of €23 million for the nine months to September 30,
2022, related to the partial reversal of the fine, plus accrued interest,
initially issued by the European Commission, in 2010, to British Airways
regarding its involvement in cartel activity in the air cargo sector and that
had been recognised as an exceptional charge. The exceptional credit was
recorded within Property, IT and other costs in the Income statement with no
resultant tax charge arising. The cash inflow associated with the partial
reversal of the fine was recognised during 2022.
(3) Impairment reversal of fleet and associated assets
The exceptional impairment reversal of €8 million for the nine months to
September 30, 2022, related to six Airbus A320s in Vueling, previously stood
down in the fourth quarter of 2020 and subsequently stood up during 2022. The
exceptional impairment reversal was recorded within Right of use assets on the
Balance sheet and within Depreciation, amortisation and impairment in the
Income statement.
b Adjusted earnings per share ((KPI))
Adjusted earnings are based on results before exceptional items after tax and
adjusted for earnings attributable to equity holders and interest on
convertible bonds, divided by the weighted average number of ordinary shares,
adjusted for the dilutive impact of the assumed conversion of the bonds and
employee share schemes outstanding.
Nine months to September 30
€ million 2023 2022
Profit after tax attributable to equity holders of the parent 2,151 199
Exceptional items - 29
Profit after tax attributable to equity holders of the parent before 2,151 170
exceptional items
Income statement impact of convertible bonds 3 (147)
Adjusted profit 2,154 23
Weighted average number of shares used for basic earnings per share 4,938 4,960
Weighted average number of shares used for diluted earnings per share 5,289 5,338
Basic earnings per share (€ cents) 43.6 4.0
Basic earnings per share before exceptional items (€ cents) 43.6 3.4
Adjusted earnings per share (€ cents) 40.7 0.4
c Net debt to EBITDA before exceptional items ((KPI))
To supplement total borrowings as presented in accordance with IFRS, the Group
reviews net debt to EBITDA before exceptional items to assess its level of net
debt in comparison to the underlying earnings generated by the Group in order
to evaluate the underlying business performance of the Group. This measure is
used to monitor the Group's leverage and to assess financial headroom against
internal and external security analyst and investor benchmarks.
Net debt is defined as long-term borrowings (both current and non-current),
less cash, cash equivalents and current interest-bearing deposits. Net debt
excludes supply chain financing arrangements which are classified within trade
payables.
EBITDA before exceptional items is defined as the rolling four quarters
operating result before exceptional items, interest, taxation, depreciation,
amortisation and impairment.
The Group believes that this additional measure, which is used internally to
assess the Group's financial capacity, is useful to the users of the financial
statements in helping them to see how the Group's financial capacity has
changed over the year. It is a measure of the profitability of the Group and
of the core operating cash flows generated by the business model.
€ million Nine months to September 30, 2023 December 31, 2022(1)
Interest-bearing long-term borrowings 17,227 19,984
Less: Cash and cash equivalents (7,801) (9,196)
Less: Other current interest-bearing deposits (1,417) (403)
Net debt 8,009 10,385
Operating profit 3,482 1,278
Add: Depreciation, amortisation and impairment 2,047 2,070
EBITDA 5,529 3,348
Add: Exceptional items (excluding those reported within Depreciation, - (23)
amortisation and impairment)
EBITDA before exceptional items 5,529 3,325
Net debt to EBITDA before exceptional items 1.4 3.1
(1)The 2022 results include a reclassification to conform with the current
period presentation for the Net gain on sale of property, plant and equipment.
d Liquidity
The Board and the Management Committee monitor liquidity in order to assess
the resilience of the Group to adverse events and uncertainty and develop
funding initiatives to maintain this resilience.
Liquidity is used by analysts, investors and other users of the financial
statements as a measure to the financial health and resilience of the Group.
Liquidity is defined as Cash and cash equivalents plus Current
interest-bearing deposits, plus Committed general undrawn facilities and
Committed aircraft undrawn facilities.
September December
€ million 30, 2023 31, 2022
Cash and cash equivalents 7,801 9,196
Current interest-bearing deposits 1,417 403
Committed general undrawn facilities 4,426 3,231
Committed aircraft undrawn facilities - 1,116
Overdrafts and other facilities 53 53
Total liquidity 13,697 13,999
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTFEDSIWEDSEFSRecent news on International Consolidated Airlines SA
See all newsREG - Intl Con Airline Grp - Total Voting Rights
AnnouncementRCS - Rothesay Life PLC - Full-Year Trading Update
AnnouncementREG - Intl Con Airline Grp - Director/PDMR Shareholding
AnnouncementREG - Intl Con Airline Grp - Total Voting Rights
AnnouncementREG - Intl Con Airline Grp - Director/PDMR Shareholding
Announcement