International Consolidated Airlines Group (IAG) presented Group consolidated results for the three months to March 31st, 2016. IAG reported first quarter operating profit of €155m before exceptional items (2015: operating profit of €25m), excluding Aer Lingus €181m.
Passenger unit revenue for the quarter was down 3.5% and at constant currency down 4.7% (excluding Aer Lingus and at constant currency down 5.2%). Non-fuel unit costs for the quarter was up 1.3% and at constant currency up 0.6% (excluding Aer Lingus and at constant currency down 0.5%).
Fuel unit costs before exceptional items for the quarter was down 23.4%, down 30.4% at constant currency. Cash of €6,824m at March 31st, 2016 was up €968m on 2015 year end.
“We’re reporting an operating profit of €155m before exceptional items which is up by €130m compared to last year. This is a good performance with a strong increase in what is traditionally the weakest quarter. Total revenue was up 7.9% and total cost per ASK decreased by 6.1%.
“January and February’s revenue was in line with Q4 2015 trends. March revenue was affected by the timing of Easter and the Brussels terrorist attacks with the latter continuing into quarter two.
“Our productivity has improved 5.9% and the underlying non-fuel unit costs performance continued to show improvement across our companies.”