IAG, which during the quarter to 31st December 2010 existed as Iberia and British Airways, has reported an Operating profit for the quarter of €6 million, a great improvement on the €114 million operating loss in the same period last year. BA’s EBIT for the quarter was €44 million while IB posted a €46 million operating loss. pro-forma net profit of €90 million in the quarter to 31stDecember 2010 from a €130 million loss the year before. Revenue for the quarter was up 13.4% on last year to €3.81 billion. Passenger revenue was up 15.6% on last year to €3.3 billion on the back of 2.7% growth in ASKs and a 12.7% rise in RASK to €0.063. Passenger yield was 13.1% up on last year at €0.0809. Cargo revenue was up 28.2% on a 3.2% increase in FTKs and a 24.2% rise in yield to €0.19.
Operating costs for the quarter were up 9.5% to €3.8 billion due to €119 million in non-recurring items. The snow in the UK and ATC strikes in Spain cost the airline a huge €71 million, after this there were merger costs of €26 million and €19 million in impairment costs relating to the scrapping of two Boeing 747s. In addition, there was a €43 million bonus provision.
Pro-forma full-year net profit for the two airlines was €100 million, compared to a €777 million loss in 2009. Operating profit was €225 million, from an operating loss of €910 million. Passenger yield improved 13.9% to €0.0793. CASK rose 5% to €0.0731 with fuel cost per ASK rising just 0.5% to €0.0196. Revenue was up 10% to €14.8 billion ASKs and operating costs rose just 1.4% to €14.6 billion. ASKs were reduced by 3.4% while RASK was up 13.9% to €0.0618.
CEO Willie Walsh said IAG airlines will “adjust and even reduce capacity” if demand falls.