International Consolidated Airlines Group Announced Q1 FY19 Results

  • May 10, 2019 BST
  • Team Kalkine
International Consolidated Airlines Group Announced Q1 FY19 Results

International Consolidated Airlines Group (IAG) on Friday (May 10, 2019), announced first-quarter results for the financial year 2019. The Group’s total revenue as reported surged by 5.9 per cent to €5,318 mn. However, volatile crude prices, market capacity impacting yield and fall of Easter beyond the reported period dragged down the group’s operating profit excluding exceptional items by €205 mn to €135 mn.

Profit after tax without exceptional items dipped by 62.6% to €70 mn from €187 mn during the corresponding period of the previous financial year. Adjusted earnings per share plummeted to €3.7 cents versus €8.7 cents accounted last year.

In the first quarter of 2019, fuel, oil and emissions charges surged by 22.8 per cent to €1,366 mn. Engineering and other operating aircrafts costs rose by 25 per cent to €485 mn. Group's non-cash charges like depreciation, amortization and impairment cost surged by 6.2 per cent to €515 mn.

Passenger revenue per RPK (revenue passenger per kilometre) was down by 1.1 per cent to €7.63c. Passenger revenue per ASK (available seat kilometres) declined by 0.8 per cent to €6.16c, and Cargo revenue per CTK (cargo tonne kilometres) slashed to €19.77c from €20.35c in Q1 FY18.  During the quarter, fuel cost per ASK surged by 15.8 per cent to €1.81c. Passenger revenue during the quarter improved by 5.2 per cent to €4,646 mn from €4,415 mn in Q1 FY18. Total cash balance stood at €7,481 mn as on 31st March 2019 and Net Debt to EBITDA improved to 1x.

Share Price Commentary

Daily Price Chart (as on May 10, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (as on May 10, 2019, at 04:53 PM GMT), shares of IAG were trading 9.3 points or 1.91 per cent higher at GBX 498.6. Stock’s 52 weeks High and Low is GBX 727/GBX 487 respectively. The stock was trading around 32 per cent below the 52w high price level and around 2.3 per cent higher against the 52w low price level.

From the volume standpoint, stock’s 5-day daily average volume traded on the LSE was around 37 per cent above the 30-day daily average volume traded on the stock exchange. The company’s stock beta was 0.68, reflecting lower volatility as compared to the benchmark index. On the valuation front, the stock was trading at a trailing twelve months PE multiple of 4.8x as compared to the industry median of 9.3x.

The outstanding market capitalization of the airline group stood at around £9.8 bn, which ranks it among the large-cap stocks listed on the LSE. The Company’s dividend yield stood at 7.8 per cent.

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