International Airlines Group (IAG) has reported a 26.2% fall in third-quarter consolidated net profit to €267 million ($366 million), from €362 million for the same period last year. The airline blamed fuel costs for the decline. Operating profit was €351 million, down 33.5% from €528 million last year.
IAG posted a net income of €338 million for the nine months to 30th September 2012, from €10 million last year. Revenue rose 11.6% to €12.26 billion and operating costs were up 10.3% to €11.88 billion after exceptional items of €68 million. Operating profit after exceptional items was up 74.9% to €383 million.
Willie Walsh, IAG CEO, said “The main challenge for 2012 will be to offset increased fuel costs, as our hedges unwind, against a background of potentially weaker demand.”
IAG stated that the BA and Iberia fuel bill had risen 25% to €1.38 billion. This led to total operating expenses being up 7.1% at €4.14 billion, erasing a 2.2% lift in revenue to €4.49 billion. Cargo revenue was up 0.3% to €389 million and passenger revenue rose 2.9% to €3.18 billion on a 2.7% fall in passengers carried to 14.9 million.
Load factor was 84.5%, up 0.3% on the back of traffic being up 3.4% at 47.02 billion RPKs on a 3.1% rise in capacity to 55.66 billion ASKs. Passenger yield declined 0.4% to 8.11 cents. CASK increased 3.5% to 7.41 cents, comprising a 19.9% hike in fuel costs per ASK to 2.47 cents and a 2.9% reduction in other costs per ASK to 4.95 cents.