GSTBA
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IAG Announce Q1 Loss

Fri May 11, 2012 7:00 am

IAG's Willie Walsh today announced

"IAG Total revenue in the quarter was up 7.8 per cent with passenger unit revenue up 8.5 per cent based on a capacity increase of 0.6 per cent. Despite this, we've made an operating loss of €249 million before exceptional items. This is mainly due to a €281 million, 24.9 per cent rise in fuel costs, driven by higher prices, the reduced impact of hedging and emissions charges. The Iberia pilots' strike cost €25 million this quarter.
"Iberia's overall operating loss for the quarter was €170 million (2011: €100 million operating loss) and British Airways' operating loss was £62 million before exceptional items (2011: £5 million operating loss). Iberia's performance reflects the weakness of the Spanish domestic market and industrial action by pilots opposed to actions by Iberia's management to improve the airline's efficiencies. For British Airways, although the London market and demand for transatlantic travel remains strong, its performance has been affected by rising fuel costs".

According to the article IAG have received been contacted by airports across the UK and beyond about starting services and, subject to reaching satisfactory agreement with them, we plan to also launch flights from Heathrow to Leeds-Bradford, Rotterdam and Zagreb and increase frequencies to existing key destinations. Consultation continues with bmi mainlinestaff and their trade unions about plans to integrate the business into British Airways.

The full article on the Q1 results can be found here:

http://www.iairgroup.com/phoenix.zht...-newsArticle&ID=1695000&highlight=

[Edited 2012-05-11 00:02:09]
 
PHX787
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 7:53 am

Well that is what strikes do to airlines. Speaking solely from an American's standpoint, I do believe that it did nothing but hurt IAG and haven't we seen this before.....

I'm sure (unrelated to the above) if IAG makes some cost cutting efforts (specifically when the 787 gets delivered) i'm sure something can be done to deal the price of fuel. We're gonna see a lot of airlines with a loss this quarter, IMO.
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Byrdluvs747
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 8:02 am

Speaking of fuel, why don't airlines tug planes to the runway instead of using the engines?
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Dano1977
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 8:28 am

Quoting Byrdluvs747 (Reply 2):
Speaking of fuel, why don't airlines tug planes to the runway instead of using the engines?

Well one reason...

The IAE V2500 engine on the Airbus, needs a 5 minute warm up time.

Tug to the runway, then a 5/10 minute hold assuming you don't start both engines at the same time.

Don't know if other engines have warm up times, or just turn and burn
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vegetables2001
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 8:35 am

Oh dear what a shame!
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PezySPU
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 8:52 am

Never would've guessed ZAG was so high on IAG's wishlist.
 
AirbusA6
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 9:06 am

If BA and IB had merged now instead of 2 years ago, I imagine the percentages given to shareholders in the 2 original airlines would have been a bit different, 2 or 3 years ago IB was on a high, with its strong routes to Latin America, while BA was struggling.

Seems strange to launch flights to Zagreb, when they only cancelled flights to Belgrade last year. Is Croatia that much more lucrative than Serbia?
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Byrdluvs747
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 9:40 am

Quoting AirbusA6 (Reply 6):
Is Croatia that much more lucrative than Serbia?

I would imagine that there's a lot more tourism to Croatia than Serbia.

Quoting Dano1977 (Reply 3):
Well one reason...

The IAE V2500 engine on the Airbus, needs a 5 minute warm up time.

Can't planes be tugged while the engines are warming up?
The 747: The hands who designed it were guided by god.
 
PezySPU
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 10:26 am

Here's something from Twitter today:

@ABDunn: #IAG Willie Walsh during Q1 call on changing market - our interest in TAP is significantly less today than it would have been 12 months ago

Quoting Byrdluvs747 (Reply 7):
Quoting AirbusA6 (Reply 6): Is Croatia that much more lucrative than Serbia?

I would imagine that there's a lot more tourism to Croatia than Serbia.

There is, but not really in ZAG. BA already operates to DBV, which is a tourist hot-spot especially in summer, but BA keeps it as an all year round service.

[Edited 2012-05-11 03:47:34]
 
anstar
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 11:48 am

Quoting PezySPU (Reply 8):
@ABDunn: #IAG Willie Walsh during Q1 call on changing market - our interest in TAP is significantly less today than it would have been 12 months ago

Totally. The have their hands full at Iberia and getting BMI integrated into BA.... It would not be a good move to take on another "project" whilst they are busy with these. Lufthansa tried and it too found itself with too many.
 
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Polot
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 12:04 pm

Quoting Byrdluvs747 (Reply 2):
Speaking of fuel, why don't airlines tug planes to the runway instead of using the engines?

In addition to the engine warm up issues previously mentioned, airlines also would have to buy a lot more tugs and hire a lot more people if they want to do that. In the end it would probably just be a wash while resulting in slower operations.
 
Byrdluvs747
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 12:16 pm

Quoting PezySPU (Reply 8):
@ABDunn: #IAG Willie Walsh during Q1 call on changing market - our interest in TAP is significantly less today than it would have been 12 months ago

I just hope that's some strategic FUD he's throwing out there.

Quoting anstar (Reply 9):
getting BMI integrated into BA

How hard can it really be to integrate one British carrier into another? It's not like BD will be operated as an independent entity like IB. I see BD as a non issue.
The 747: The hands who designed it were guided by god.
 
heebeegb
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 2:38 pm

Virgin tried towing aircraft to the runway in the past

See the discussion about it here

Virgin Abandons Plans To Tow Aircraft To Runway (by BCAL Mar 12 2008 in Civil Aviation)
 
by738
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 5:09 pm

Cant see any of those routes being maintained for the long term. LBA particularly is an oddity.
 
Tristarsteve
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 5:54 pm

Quoting Byrdluvs747 (Reply 11):
How hard can it really be to integrate one British carrier into another? It's not like BD will be operated as an independent entity like IB. I see BD as a non issue.

Its not hard, just a lot of work.
All the pilots and cabin crew need retraining.
All the aircraft need modification, painting, and conversion to the BA AOC.
This will all be complete by Christmas.
A BMI A319 may look like a BA A319, but inside they are different. BMI have more seats, less toilets, different cabin crew seats, different galleys, different emergency equipment, different pax seats etc etc.
The plan is that by Xmas any BA crew can operate any aircraft.
Lots to do.

By the way the first few BMI aircraft will emerge in the Olympic Dove livery.
 
anstar
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 5:56 pm

Quoting Byrdluvs747 (Reply 11):

How hard can it really be to integrate one British carrier into another? It's not like BD will be operated as an independent entity like IB. I see BD as a non issue.

Ok it might not be hard but it will take alot of managements time and focus.
 
timboflier215
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 6:16 pm

How does this stack up against Air France-KLM and Lufthansa's 1st Quarters?
 
speedbird9
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 6:32 pm

 
kdhurst380
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RE: IAG Announce Q1 Loss

Fri May 11, 2012 9:32 pm

Quoting Byrdluvs747 (Reply 7):
Can't planes be tugged while the engines are warming up?

Considering the engine is running during the warm up phase, it would defeat the object. You only need a little bit of breakaway thrust to get a small Airbus moving then they keep going on idle with ease.

Most airlines nowadays at least shut an engine down after landing, easyJet have recently started an initiative of single engine taxi both before and after flight.

[Edited 2012-05-11 14:56:01]
 
SuperCaravelle
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RE: IAG Announce Q1 Loss

Sat May 12, 2012 4:33 pm

Quoting timboflier215 (Reply 16):
How does this stack up against Air France-KLM and Lufthansa's 1st Quarters?

In terms of numbers, similar, size considered (LH something like 300 million, AF-KL 300something million).

The biggest part of the loss can be attributed to IB though. I know the Spanish economy has collapsed as well, but as of now IB hasn't benefited from the merger yet.
 
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EK413
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RE: IAG Announce Q1 Loss

Mon May 14, 2012 5:57 am

Quoting Byrdluvs747 (Reply 2):
Quoting Byrdluvs747 (Reply 7):
Quoting Polot (Reply 10):

You would be stuck with costs of running more tugs, fuel, maintenance and staff... Really don't see how this concept would work and let's not forget VS have trialed the same concept...

There is a thread discussing Alitalia investing in a new device which allows aircraft to taxi engineless utulizing APU power... Includes a youtube video of a LH A320 under going trials in FRA...

EK413
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