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International Consolidated Airlines Group. S.A.
Quarterly Report • Oct 27, 2023
1846_rns_2023-10-27_fe3a02ca-fd3a-4e48-b4f8-0a91b6bb0f69.pdf
Quarterly Report
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Disclaimer
LEI: 959800TZHQRUSH1ESL13
Forward-looking statements:
Certain statements included in this document and any related conference call or webcast (including any related Q&A session) 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 document and any related conference call or webcast (including any related Q&A session) are based upon information known to the Group on that date and speak as of that date. 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 document and any related conference call or webcast (including any related Q&A session) 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 document and participants in any related conference call or webcast (including any related Q&A session) 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 document 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 document and any related conference call or webcast (including any related Q&A session) contain, 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 alternative performance measures, refer to the Alternative performance measures section in the IAG Annual report and accounts 2022 (IAG Annual Report and Accounts 2022 (iairgroup.com)) and the Interim Management Report for the nine months to September 30, 2023 (IAG Q3 2023 Results (iairgroup.com)). These documents are available on www.iairgroup.com
Highlights
Luis Gallego Chief Executive Officer
Q3 2023 Highlights
Record third quarter profit with strong trading across the Group and a significantly stronger Balance Sheet
- Record Q3 profit driven by a strong trading performance across the Group
- Group operating profit before exceptional items of €1,745m (vs Q3 2022 €1,216m)
- Sustained strong demand driving positive unit revenue across our airlines and across our network
- Customer bookings for Q4 as expected with around 75% of the fourth quarter's passenger revenue already booked
- Non-fuel unit cost 3.5% better vs Q3 2022, despite c.1.0 percentage point negative impact of disruption
- Balance Sheet strengthening continues:
- British Airways £2.0bn UKEF-backed loan fully repaid early; €500m IAG bond repaid on maturity
- Gross debt reduced to €17.2bn (Q3 2022 €20.0bn); net debt to EBITDA of 1.4x
- S&P upgraded both IAG and British Airways to Investment Grade
- 2023 expected to be a year of strong recovery in our operating profit, margins and Balance Sheet
Financial results
Nicholas Cadbury
Chief Financial Officer
Record profit in the third quarter
*Before exceptional items
*Other includes LEVEL, IAG Cargo, IAG GBS, ICAG and consolidation adjustments
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/(loss). Accordingly, for the three months to September 30, 2022, the Group has reclassified €10 million of gains from Other nonoperating (charges)/credits to expenditure on operations. There is no impact on the Loss after tax.
Our key metrics
| Activity | ASKs +17.9% vLY |
||||
|---|---|---|---|---|---|
| Commercial performance |
Total pax revenue €7,733m +20.5% vLY |
PRASK €8.76c +2.2% vLY |
Load factor 88.9% +1.9pts vLY |
||
| Cost performance |
Total expenditure €6,901m +12.9% vLY |
CASK €7.82c (4.3)% vLY |
Fuel CASK €2.30c (6.2)% vLY |
Non-fuel CASK €5.52c (3.5)% vLY |
|
| Financials | Operating result €1,745m +€529m vLY |
Operating margin 20.2% +3.6pts vLY |
Net debt €8,009m €(2.4)bn vDec-22 |
Net Debt / EBITDA 1.4x (1.7x) vDec-22 |
Liquidity €13,697m €(0.3)bn vDec-22 |
The metrics included in this slide are before exceptional items
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 three months to 30 September 2022, the Group has reclassified €10 million of gains from Other non-operating (charges)/credits to Expenditure on operations. There is no impact on the Profit after tax.
Strong performance across the Group
| Q3 2023 (€m) |
vLY | Q3 2023 (£m) |
vLY | Q3 2023 (€m) |
vLY | Q3 2023 (€m) |
vLY | Q3 2023 (£m) |
vLY | |
|---|---|---|---|---|---|---|---|---|---|---|
| Total revenue | 769 | +16.4% | 4,038 | +20.3% | 1,943 | +18.8% | 1,081 | +5.9% | 355 | +58.0% |
| Passenger revenue | 754 | +17.7% | 3,592 | +24.7% | 1,558 | +23.4% | 1,076 | +5.9% | 211 | +39.5 |
| Operating result before exceptional items | 196 | +57 | 617 | +205 | 449 | +194 | 282 | +23 | 76 | +22 |
| Operating margin before exceptional items | 25.5% | +4.5pts | 15.3% | +3.0pts | 23.1% | +8.0pts | 26.1% | +0.7pts | 21.3% | (2.6)pts |
| ASK (m) | 9,206 | +14.7% | 44,784 | +24.6% | 20,340 | +17.6% | 11,987 | (1.0)% | - | - |
| PRASK (€c/p) | 8.19 | +2.6% | 8.02 | +0.2% | 7.66 | +4.9% | 8.98 | +6.9% | - | - |
| Non-fuel CASK (€c/p) | 4.22 | +0.8% | 5.43 | (7.6)% | 5.42 | (6.2)% | 4.45 | +5.8% | - | - |
• 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 three months to 30 September 2022, the Group has reclassified €10 million of gains from Other non-operating (charges)/credits to Expenditure on operations. There is no impact on the Profit after tax.
• Iberia figures exclude LEVEL
Our trading in Q3 2023 compared to Q3 2022 (% v22)
Continued Balance Sheet strengthening
| €m | 31 Dec 2019 | 31 Dec 2022 | 30 Sep 2022 | 30 Sep 2023 |
|---|---|---|---|---|
| Gross debt | 14,254 | 19,984 | 20,318 | 17,227 |
| Bank and other loans | 1,954 | 6,546 | 6,940 | 3,567 |
| Asset financed and lease liabilities | 12,300 | 13,438 | 13,378 | 13,660 |
| Cash, cash equivalents and interest-bearing deposits | 6,683 | 9,599 | 9,260 | 9,218 |
| Net debt | 7,571 | 10,385 | 11,058 | 8,009 |
| Net debt / EBITDA before exceptional items | 1.4x | 3.1x | 3.1x | 1.4x |
Note: Net debt decrease compared to 31 December 2022 includes unfavourable non-cash movements of €965m in the nine months to September 2023
| Total liquidity (cash and facilities) | 8,615 | 13,999 | 13,488 | 13,697 |
|---|---|---|---|---|
| --------------------------------------- | ------- | -------- | -------- | -------- |
- Full year 2023 Capex reiterated at c.€4bn, with 10 aircraft deliveries* expected for the fourth quarter
- IAG's €500m unsecured bond repaid on 4 July 2023
- British Airways £2.0bn UKEF-backed loan fully repaid early on 28 September 2023
- Net debt to increase at the year-end in line with the usual seasonal patterns in the fourth quarter
Manageable debt repayment schedule
Bonds issued by ICAG
- €500 million fixed rate 2.75 per cent bond 2025
- €500 million fixed rate 1.50 per cent bond 2027
- €825 million convertible rate 1.125 per cent bond 2028
- €700 million fixed rate 3.75 per cent bond 2029
Other secured loans
• Floating rate euro mortgage loans secured on aircraft
Other unsecured bonds and loans
- Fixed rate unsecured bonds
- Fixed rate unsecured US dollar mortgage loan
- Fixed rate unsecured euro loans with the Spanish State (Department of Industry)
- Floating rate ICO guaranteed loans
Note: Excludes finance and operating leases
Fuel hedging - c.73% for the remainder of 2023
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | |
|---|---|---|---|---|---|---|
| Jet fuel price scenario | \$1,015/mt | \$965/mt | \$915/mt | \$865/mt | \$865/mt | \$865/mt |
| \$/€ scenario | 1.07 | 1.07 | 1.07 | 1.07 | 1.07 | 1.07 |
| Hedge ratio | 73% | 73% | 58% | 48% | 40% | 29% |
| Effective blended price post fuel and FX hedging* | \$975/mt | \$870/mt | \$910/mt | \$860/mt | \$870/mt | \$865/mt |
* Note: Effective blended price excluding into plane cost
Full year 2023 fuel cost expected to be c.€7.6bn based on forward jet fuel prices and spot foreign exchange rates at 26 October 2023
Profit after tax and exceptional items of €2,151m in 9M 2023
| Nine months to 30 September 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| €m | Statutory 2023 |
Exceptional items |
Before exceptional items 2023 |
Statutory 2022 |
Exceptional items |
Before exceptional items 2022 |
||
| Revenue | 22,229 | - | 22,229 | 16,680 | - | 16,680 | ||
| Operating costs | 19,224 | - | 19,224 | 15,879 | (31) | 15,910 | ||
| Operating result | 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 credits/(charges) | 64 | - | 64 | (305) | - | (305) | ||
| Other non-operating credits | 51 | - | 51 | 231 | - | 231 | ||
| Profit before tax | 2,615 | - | 2,615 | 166 | 31 | 135 | ||
| Tax | (464) | - | (464) | 33 | (2) | 35 | ||
| Profit after tax | 2,151 | - | 2,151 | 199 | 29 | 170 |
*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 months to 30 September 2022, the Group has reclassified €31 million of gains from Other nonoperating (charges)/credits to Expenditure on operations. There is no impact on the Profit after tax.
Business overview and outlook
Luis Gallego Chief Executive Officer
Business update and outlook
Strong demand across our airlines and our network in Q3
| • Leisure demand remained strong in all regions, particularly US premium, driving record business cabin load factors • Business demand recovering slowly; shorthaul particularly impacted by fewer day-trips /one-night stays, but longhaul performing better • Largest longhaul schedule ever in Q3, with new route to Cleveland. Shorthaul growth to popular Med. destinations. New route for Denver in '24 • North Atlantic operations performed extremely well. Challenges remain with UK/European ATC and Dublin Airport congestion |
|---|
| • Leisure demand remained strong in all regions, especially premium leisure. N. Atlantic point of sale and shorthaul Med. was particularly strong • Business demand recovering slowly; shorthaul impacted by fewer short trips, but longhaul performing better • Tokyo/Beijing frequency growth; new leisure-focused route to Abu Dhabi; codeshare with Indigo; growing EuroFlyer • Investment in stabilising the operational performance, with ongoing external challenges. Expected improvement into the winter |
| • Strong leisure demand in all regions. Premium leisure strength driving higher business cabin loads in all regions, despite higher capacity vs. 2019 • Business demand returning stronger after the summer and close to 2019 level of revenue • LatAm capacity growth focused on primary cities and driven by higher utilisation. Launch of Madrid-Doha as a gateway for Asian destinations • Continued global leadership in OTP |
| • Strong demand across the entire network, with transformation initiatives driving load factor expansion and strong ancillary revenue performance • Q3 capacity held to pre-COVID-19 levels until sustainable labour agreements are reached • OTP improved by more than 8 percentage pts vs 2019, ahead of Vueling Transform project targets |
| • Record quarter for member engagement, with 1.3m customers joining IAG programmes • Highest quarter ever for Avios issued to customers and redeemed by customers • Continued roll-out of programme enhancements, including new 'Avios-only Flights' for Summer 2024 • Announced Finnair Plus will adopt Avios as its loyalty currency from Q1 2024 |
Outlook
- We expect full year 2023 capacity to be around 96% of pre-COVID-19 levels
- Customer bookings for Q4 as expected with around 75% of the fourth quarter's passenger revenue already booked
- Whilst the business is performing well and 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 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 c.73% of hedging we have in place for the remainder of the year, 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 31 December 2023 to increase in line with the usual seasonal patterns in the fourth quarter
Summary
- Record third quarter profit with sustained strong demand driving positive unit revenue across our airlines and across our network
- Balance Sheet continues to strengthen: gross debt has reduced by over €3bn in the last 12 months and IAG and British Airways now Investment Grade with S&P
- 2023 expected to be a year of strong recovery in our operating profit, margins and Balance Sheet
- Continue to target strong margins and return on capital in the medium term
- Capital Markets Day to be held on 21 November 2023
Appendices
FY 2023 capacity planned to be c.96% of 2019 level
| ASKs | Q4 2023 vs 2022 |
Q4 2023 % of 2019 |
FY 2023 vs 2022 |
FY 2023 % of 2019 |
|---|---|---|---|---|
| +9% | 108% | +20% | 104% | |
| +16% | 93% | +29% | 90% | |
| +20% | 111% | +19% | 103% | |
| +23% | 124% | +36% | 136% | |
| +6% | 118% | +11% | 109% | |
| +15% | 100% | +23% | 96% |
Our key metrics (v2022 and v2019)
| Activity | ASKs (4.4)% v19 +17.9% v22 |
||||
|---|---|---|---|---|---|
| Commercial performance |
Total pax revenue €7,733m +19.1% v19 +20.5% v22 |
PRASK €8.76c +24.6% v19 +2.2% v22 |
Load factor 88.9% +1.2pts v19 +1.9pts v22 |
||
| Cost performance |
Total expenditure €6,901m +17.9% v19 +12.9% v22 |
CASK €7.82c +23.3% v19 (4.3)% v22 |
Fuel CASK €2.30c +30.0% v19 (6.2)% v22 |
Non-fuel CASK €5.52c +20.8% v19 (3.5)% v22 |
|
| Financials | Operating result €1,745m +€332m v19 +€529m v22 |
Operating margin 20.2% +0.7pts v19 +3.6pts v22 |
Net debt €8,009m +€0.4bn vDec-19 €(2.4)bn vDec-22 |
Net Debt / EBITDA 1.4x flat vDec-19 (1.7x) vDec-22 |
Liquidity €13,697m +€5.1bn vDec-19 €(0.3)bn vDec-22 |
The metrics included in this slide are before exceptional items
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 three months to 30 September 2022, the Group has reclassified €10 million of profits from Other non-operating (charges)/credits to Expenditure on operations. There is no impact on the Profit after tax.
2023 Quarter Three results
For the three months to 30 September 2019, the Group has reclassified €3 million of losses from Other non-operating activities
Record third quarter profit
| €m | Q3 2023 | Q3 2022* | Q3 2019** | vs22 | |
|---|---|---|---|---|---|
| Passenger revenue | 7,733 | 6,416 | 6,492 | +20.5% | |
| Cargo revenue | 263 | 373 | 269 | (29.5)% | |
| Other revenue | 650 | 540 | 505 | +20.4% | |
| Total revenue | 8,646 | 7,329 | 7,266 | +18.0% | |
| Employee costs | 1,375 | 1,250 | 1,230 | +10.0% | |
| Fuel, oil costs and emissions charges | 2,029 | 1,834 | 1,633 | +10.6% | |
| Supplier costs | 2,970 | 2,521 | 2,468 | +17.8% | |
| Ownership costs | 527 | 508 | 522 | +3.7% | |
| Total expenditure on operations | 6,901 | 6,113 | 5,853 | +12.9% | |
| Operating result before exceptional items | 1,745 | 1,216 | 1,413 | +529 | |
| Operating margin before exceptional items | 20.2% | 16.6% | 19.5% | +3.6pts | |
| Operating result after exceptional items | 1,745 | 1,218 | 1,416 | +527 | |
| ASKs (m) | 88,259 | 74,834 | 92,318 | +17.9% | |
| RPKs (m) | 78,494 | 65,078 | 80,923 | +20.6% | |
| Load factor (%) | 88.9% | 87.0% | 87.7% | +1.9pts | |
| Sector length (km) | 2,370 | 2,213 | 2,329 | +7.1% |
- Operating profit of €1,745m, including a favourable FX impact of €35m
- Operating margin up 3.6pts reflecting a strong performance across our airlines due to continued strong demand from leisure travel and the capacity recovery
- Total revenue 18.0% higher than Q3-22
- Passenger revenue 20.5% higher than Q3-22 :
- Traffic (RPKs) +20.6% / capacity (ASKs) +17.9% vs Q3-22 ((4.4)% vs Q3-19)
- Passenger unit revenue +2.2% vs Q3-22
- Driven by load factor of 88.9% (+1.9pts vs. Q3-22), with yield (0.1)% vs Q3-22
- Unit revenue driven by strong leisure demand across the network, while business recovering slowly through the half
- Cargo revenue down (29.5)% vs Q3-22 driven entirely by yield, with cargo traffic (CTKs) +19.7% vs Q3-22. Yields down (41.1)%, reflecting depressed market conditions and significant pricing pressures due to excess market capacity
- Other revenue +20.4% vs Q3-22 driven by IAG Loyalty, MRO and BA Holidays
- Total unit costs down (4.3)% vs Q3-22. Non-fuel unit costs down (3.5)% vs Q3-22; fuel unit costs down (6.2)% vs Q3-22
- Fuel unit cost down (6.2)%, driven by fuel commodity prices down year on year, partially offset by hedging gains last year which were not repeated this year
- Non-fuel unit costs included a c.1.0%pt impact from higher disruption across the business, including the UK NATS systems outage in August.
- Employee unit costs down (6.7)% vs Q3-22, driven by increase in capacity
- Supplier unit costs down (0.1)% vs Q3-22, driven by increase in capacity
*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 three months to 30 September 2022, the Group has reclassified €10 million of profits from Other non-operating (charges)/credits to Expenditure on operations. There is no impact on the Profit after tax. **For the three months to 30 September 2019, the Group has reclassified €3 million of losses from Other non-operating activities
Group performance
| Q3 2023 | Q3 2022 | vLY | 2023 | 2022 | vLY | |
|---|---|---|---|---|---|---|
| Passengers carried ('000s) | 33,241 | 29,535 | +12.5% | 87,548 | 69,504 | +26.0% |
| Domestic (UK & Spain) | 8,192 | 7,714 | +6.2% | 22,027 | 18,997 | +15.9% |
| Europe | 17,722 | 15,969 | +11.0% | 45,587 | 36,031 | +26.5% |
| North America | 3,737 | 3,141 | +19.0% | 9,734 | 7,142 | +36.3% |
| Latin America & Caribbean | 1,645 | 1,374 | +19.7% | 4,700 | 3,950 | +19.0% |
| Africa, Middle East & South Asia | 1,629 | 1,261 | +29.2% | 4,718 | 3,217 | +46.7% |
| Asia Pacific | 316 | 76 | +315.8% | 782 | 167 | +368.3% |
| Revenue passenger km (m) | 78,494 | 65,078 | +20.6% | 208,079 | 156,624 | +32.9% |
| Domestic (UK & Spain) | 6,413 | 6,168 | +4.0% | 17,398 | 15,178 | +14.6% |
| Europe | 22,285 | 20,162 | +10.5% | 55,360 | 44,328 | +24.9% |
| North America | 24,756 | 20,943 | +18.2% | 64,574 | 47,497 | +36.0% |
| Latin America & Caribbean | 13,473 | 10,715 | +25.7% | 38,217 | 31,065 | +23.0% |
| Africa, Middle East & South Asia | 8,582 | 6,427 | +33.5% | 25,130 | 17,072 | +47.2% |
| Asia Pacific | 2,985 | 663 | +350.2% | 7,400 | 1,484 | +398.7% |
| Available seat km (m) | 88,259 | 74,834 | +17.9% | 242,293 | 192,544 | +25.8% |
| Domestic (UK & Spain) | 6,880 | 6,712 | +2.5% | 19,366 | 17,778 | +8.9% |
| Europe | 24,892 | 23,219 | +7.2% | 64,008 | 54,411 | +17.6% |
| North America | 28,498 | 24,736 | +15.2% | 77,264 | 60,442 | +27.8% |
| Latin America & Caribbean | 14,886 | 11,974 | +24.3% | 43,324 | 36,895 | +17.4% |
| Africa, Middle East & South Asia | 9,813 | 7,458 | +31.6% | 30,045 | 21,211 | +41.6% |
| Asia Pacific | 3,290 | 735 | +347.6% | 8,286 | 1,807 | +358.6% |
| Passenger load factor (%) | 88.9 | 87.0 | +1.9 pts | 85.9 | 81.3 | +4.6 pts |
| Domestic (UK & Spain) | 93.2 | 91.9 | +1.3 pts | 89.8 | 85.4 | +4.4 pts |
| Europe | 89.5 | 86.8 | +2.7 pts | 86.5 | 81.5 | +5.0 pts |
| North America | 86.9 | 84.7 | +2.2 pts | 83.6 | 78.6 | +5.0 pts |
| Latin America & Caribbean | 90.5 | 89.5 | +1.0 pts | 88.2 | 84.2 | +4.0 pts |
| Africa, Middle East & South Asia | 87.5 | 86.2 | +1.3 pts | 83.6 | 80.5 | +3.1 pts |
| Asia Pacific | 90.7 | 90.2 | +0.5 pts | 89.3 | 82.1 | +7.2 pts |
| Cargo tonne km (m) | 1,138 | 951 | +19.7% | 3,362 | 2,890 | +16.3% |
2023 Third quarter results
Group performance
| Q3 2023 | Q3 2019 | v19 | 2023 | 2019 | v19 | |
|---|---|---|---|---|---|---|
| Passengers carried ('000s) | 33,241 | 34,562 | -3.8% | 87,548 | 90,448 | -3.2% |
| Domestic (UK & Spain) | 8,192 | 8,067 | +1.5% | 22,027 | 21,442 | +2.7% |
| Europe | 17,722 | 18,997 | -6.7% | 45,587 | 48,309 | -5.6% |
| North America | 3,737 | 3,567 | +4.8% | 9,734 | 9,536 | +2.1% |
| Latin America & Caribbean | 1,645 | 1,690 | -2.7% | 4,700 | 4,704 | -0.1% |
| Africa, Middle East & South Asia | 1,629 | 1,585 | +2.8% | 4,718 | 4,586 | +2.9% |
| Asia Pacific | 316 | 656 | -51.8% | 782 | 1,871 | -58.2% |
| Revenue passenger km (m) | 78,494 | 80,923 | -3.0% | 208,079 | 216,607 | -3.9% |
| Domestic (UK & Spain) | 6,413 | 5,989 | +7.1% | 17,398 | 15,691 | +10.9% |
| Europe | 22,285 | 23,067 | -3.4% | 55,360 | 56,535 | -2.1% |
| North America | 24,756 | 23,447 | +5.6% | 64,574 | 62,945 | +2.6% |
| Latin America & Caribbean | 13,473 | 14,120 | -4.6% | 38,217 | 39,040 | -2.1% |
| Africa, Middle East & South Asia | 8,582 | 8,026 | +6.9% | 25,130 | 24,466 | +2.7% |
| Asia Pacific | 2,985 | 6,274 | -52.4% | 7,400 | 17,930 | -58.7% |
| Available seat km (m) | 88,259 | 92,318 | -4.4% | 242,293 | 255,749 | -5.3% |
| Domestic (UK & Spain) | 6,880 | 6,611 | +4.1% | 19,366 | 17,878 | +8.3% |
| Europe | 24,892 | 26,320 | -5.4% | 64,008 | 67,476 | -5.1% |
| North America | 28,498 | 26,896 | +6.0% | 77,264 | 74,923 | +3.1% |
| Latin America & Caribbean | 14,886 | 15,960 | -6.7% | 43,324 | 45,097 | -3.9% |
| Africa, Middle East & South Asia | 9,813 | 9,439 | +4.0% | 30,045 | 29,433 | +2.1% |
| Asia Pacific | 3,290 | 7,092 | -53.6% | 8,286 | 20,942 | -60.4% |
| Passenger load factor (%) | 88.9 | 87.7 | +1.2 pts | 85.9 | 84.7 | +1.2 pts |
| Domestic (UK & Spain) | 93.2 | 90.6 | +2.6 pts | 89.8 | 87.8 | +2.0 pts |
| Europe | 89.5 | 87.6 | +1.9 pts | 86.5 | 83.8 | +2.7 pts |
| North America | 86.9 | 87.2 | -0.3 pts | 83.6 | 84.0 | -0.4 pts |
| Latin America & Caribbean | 90.5 | 88.5 | +2.0 pts | 88.2 | 86.6 | +1.6 pts |
| Africa, Middle East & South Asia | 87.5 | 85.0 | +2.5 pts | 83.6 | 83.1 | +0.5 pts |
| Asia Pacific | 90.7 | 88.5 | +2.2 pts | 89.3 | 85.6 | +3.7 pts |
| Cargo tonne km (m) | 1,138 | 1,346 | -15.5% | 3,362 | 4,148 | -18.9% |
2023 Third quarter results
Group performance by Opco
| Passengers carried ('000s) | 3,282 | 2,982 | +10.1% | 8,336 | 6,672 | +24.9% |
|---|---|---|---|---|---|---|
| Revenue passenger km (m) | 7,875 | 6,980 | +12.8% | 19,755 | 14,850 | +33.0% |
| Available seat km (m) | 9,206 | 8,026 | +14.7% | 23,900 | 19,221 | +24.3% |
| Passenger load factor (%) | 85.5 | 87.0 | -1.5 pts | 82.7 | 77.3 | +5.4 pts |
| Cargo tonne km (m) | 38 | 33 | +15.2% | 109 | 94 | +16.0% |
| Passengers carried ('000s) | 12,127 | 9,653 | +25.6% | 32,638 | 24,016 | +35.9% |
| Revenue passenger km (m) | 39,248 | 30,048 | +30.6% | 105,685 | 74,826 | +41.2% |
| Available seat km (m) | 44,784 | 35,942 | +24.6% | 125,997 | 94,515 | +33.3% |
| Passenger load factor (%) | 87.6 | 83.6 | +4.0 pts | 83.9 | 79.2 | +4.7 pts |
| Cargo tonne km (m) | 842 | 707 | +19.1% | 2,494 | 2,137 | +16.7% |
| Passengers carried ('000s) | 6,497 | 5,620 | +15.6% | 17,969 | 14,507 | +23.9% |
| Revenue passenger km (m) | 18,189 | 15,367 | +18.4% | 48,955 | 39,428 | +24.2% |
| Available seat km (m) | 20,340 | 17,297 | +17.6% | 55,866 | 47,195 | +18.4% |
| Passenger load factor (%) | 89.4 | 88.8 | +0.6 pts | 87.6 | 83.5 | +4.1 pts |
| Cargo tonne km (m) | 250 | 202 | +23.8% | 733 | 635 | +15.4% |
| Passengers carried ('000s) | 221 | 164 | +34.8% | 539 | 357 | +51.0% |
| Revenue passenger km (m) | 1,853 | 1,386 | +33.7% | 4,578 | 3,058 | +49.7% |
| Available seat km (m) | 1,942 | 1,461 | +32.9% | 4,825 | 3,413 | +41.4% |
| Passenger load factor (%) | 95.4 | 94.9 | +0.5 pts | 94.9 | 89.6 | +5.3 pts |
| Cargo tonne km (m) | 8 | 9 | -11.1% | 26 | 24 | +8.3% |
| Passengers carried ('000s) | 11,114 | 11,116 | -0.0% | 28,066 | 23,952 | +17.2% |
| Revenue passenger km (m) | 11,329 | 11,297 | +0.3% | 29,106 | 24,462 | +19.0% |
| Available seat km (m) | 11,987 | 12,108 | -1.0% | 31,705 | 28,200 | +12.4% |
| Passenger load factor (%) | 94.5 | 93.3 | +1.2 pts | 91.8 | 86.7 | +5.1 pts |
| Cargo tonne km (m) | n/a | n/a | n/a | n/a | n/a | n/a |
Group performance by Opco
| Performance by airline | Q3 2023 | Quarter Q3 2019 |
v19 | 2023 | Year to date 2019 |
v19 |
|---|---|---|---|---|---|---|
| Passengers carried ('000s) Revenue passenger km (m) Available seat km (m) Passenger load factor (%) Cargo tonne km (m) |
3,282 7,875 9,206 85.5 38 |
3,590 7,782 8,925 87.2 42 |
-8.6% +1.2% +3.1% -1.7 pts -9.5% |
8,336 19,755 23,900 82.7 109 |
9,041 19,033 23,123 82.3 124 |
-7.8% +3.8% +3.4% +0.4 pts -12.1% |
| Passengers carried ('000s) Revenue passenger km (m) Available seat km (m) Passenger load factor (%) Cargo tonne km (m) |
12,127 39,248 44,784 87.6 842 |
13,042 41,791 48,444 86.3 1,010 |
-7.0% -6.1% -7.6% +1.3 pts -16.6% |
32,638 105,685 125,997 83.9 2,494 |
36,157 117,434 140,614 83.5 3,155 |
-9.7% -10.0% -10.4% +0.4 pts -21.0% |
| Passengers carried ('000s) Revenue passenger km (m) Available seat km (m) Passenger load factor (%) Cargo tonne km (m) |
6,497 18,189 20,340 89.4 250 |
6,259 18,377 20,553 89.4 294 |
+3.8% -1.0% -1.0% +0.0 pts -15.0% |
17,969 48,955 55,866 87.6 733 |
16,902 48,400 55,357 87.4 868 |
+6.3% +1.1% +0.9% +0.2 pts -15.6% |
| Passengers carried ('000s) Revenue passenger km (m) Available seat km (m) Passenger load factor (%) Cargo tonne km (m) |
221 1,853 1,942 95.4 8 |
574 2,286 2,631 86.9 0 |
-61.5% -18.9% -26.2% +8.5 pts |
539 4,578 4,825 94.9 26 |
1,347 5,685 6,806 83.5 1 |
-60.0% -19.5% -29.1% +11.4 pts +2500.0% |
| Passengers carried ('000s) Revenue passenger km (m) Available seat km (m) Passenger load factor (%) Cargo tonne km (m) |
11,114 11,329 11,987 94.5 n/a |
11,097 10,687 11,765 90.8 n/a |
+0.2% +6.0% +1.9% +3.7 pts n/a |
28,066 29,106 31,705 91.8 n/a |
27,001 26,055 29,849 87.3 n/a |
+3.9% +11.7% +6.2% +4.5 pts n/a |
2023 Third quarter results
Alternative Performance Measures (APMs) and Financial terminology definitions
| Measure | IFRS/APM | Definition | Source of calculation |
|---|---|---|---|
| Operating profit (and other Income statement items) before exceptional items |
APM | See IAG 2022 ARA (APMs section) and accounting policies | Q3 2023 Interim Management Statement (Reconciliation of alternative performance measures section, note a: Profit after tax before exceptional items) |
| EBITDA before exceptional items | APM | EBITDA excluding exceptional items | Table in Q3 2023 Interim Management Statement (Reconciliation of alternative performance measures section, note c: Net debt to EBITDA before exceptional items) |
| Unit measures (PRASK, Fuel CASK, Non Fuel CASK) |
APM | Passenger revenue, fuel costs, non-fuel costs (before exceptional items) divided by capacity (ASKs) |
Glossary in 2022 ARA |
| Gross debt | IFRS | Total borrowings (current and non-current) | Direct from Balance sheet (Current liabilities, Non-current liabilities) |
| Cash | IFRS | Cash and cash equivalents and Current interest-bearing deposits | Direct from Balance sheet (Current assets) |
| Net debt | IFRS | Gross debt less Cash | Q3 2023 Interim Management Statement (Reconciliation of alternative performance measures section (note e: Net debt to EBITDA before exceptional items) |
| Net debt to EBITDA before exceptional items (or Leverage) |
APM | Based on Net debt per above and EBITDA excluding exceptional items |
Q3 2023 Interim Management Statement (Reconciliation of alternative performance measures section), note c: Net debt to EBITDA before exceptional items) |
| Liquidity (or Total liquidity) | APM | Cash (per above) plus committed and undrawn general and overdraft facilities, and aircraft-specific financing facilities |
Q3 2023 Interim Management Statement Financial review (Reconciliation of alternative performance measures section, note d: Liquidity) |
| Movements in working capital | IFRS | Movements in working capital per cash flow statement | Direct from Cash flow statement (Cash flows from operating activities) |
| Capex (or Gross Capital Expenditure) | IFRS | Acquisition of property, plant and equipment and intangible assets per cash flow statement |
Direct from Cash flow statement (Cash flows from investing activities) |
Connecting people, businesses and countries
2023 Quarter Three results
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