IAG has announced its annual results for the year to 31 December 2015. The group made an overall operating profit of €2,335m, an improvement from €1,390m the year before.

http://www.iairgroup.com/phoenix.zht...=irol-newsArticle_Print&ID=2143692

Wow massive year for IAG what an incredible performance. Really getting better every year and no doubt the major turnaround and improvements at IB seem to be paying off now too.

Well done IAG

Quoting FCAFLYBOY (Reply 1): Wow massive year for IAG what an incredible performance.

Thank you low fuel prices.

And once BA have finished sacking all of their European based engineers (and handed it over to the cheapest provider) they'll be able to make even more profits and management bonuses.

[Edited 2016-02-26 01:25:33]

Quoting charliecossie (Reply 3):

Too true, disgusting....Even right down to getting rid of the "aunties" now!!!
And our pensions next month!!!!
Was it me or has Mr Walsh aged? He looked quite unwell....

Quoting charliecossie (Reply 3): And once BA have finished sacking all of their European based engineers (and handed it over to the cheapest provider) they'll be able to make even more profits and management bonuses.

Business needs to remain competitive   That's the way it has to work sadly to remain alive against the easyJets and Ryanairs of this world. Compare the calibre and training of BA ground handling outside of London before it was outsourced, it's PAINFUL.

Quoting KarelXWB (Reply 2): Thank you low fuel prices.

The report suggests other factors. This may be because IAG follows a constant fuel hedging policy aimed to be balanced whether fuel prices escalate or fall.

This report identifies a fuel cost per ASK of 2.06 € cents in 2015. The cost was 2.38 € cents per ASK in 2014. The reduction is 13.4 per cent. Compare this with a 103.8 per cent or €1,390m improvement in operating profit. Many other sources were in play including currency gains and improved RPK

Actual total 'Fuel, oil and emission charge' costs for 2015 are given as € 1,402M. This is down just 2.8 per cent from € 1,470M but on an almost certain increased volume.

Quoting KarelXWB (Reply 2): Thank you low fuel prices.

Fuel prices might have dropped but the dollar became stronger so this negated a lot of the fuel savings.

Great. Maybe they can address the endless complaints I get from their J class pax on everything from the LGW lounge to the much loathed CE cabin that makes FR and U2 feel luxurious by comparison. I got another one this morning about the food in F on CPT LHR. I miss the days when there were people at BA who actually gave a damn about what we had to say.

Quoting offloaded (Reply 8): Great. Maybe they can address the endless complaints I get from their J class pax on everything from the LGW lounge to the much loathed CE cabin that makes FR and U2 feel luxurious by comparison. I got another one this morning about the food in F on CPT LHR. I miss the days when there were people at BA who actually gave a damn about what we had to say.

That's interesting. We've been fed so much propaganda here about what IAG's takeover of Aer Lingus will mean in improvements for the company. I don't necessarily believe bigger is better.

Quoting charliecossie (Reply 3): And once BA have finished sacking all of their European based engineers (and handed it over to the cheapest provider) they'll be able to make even more profits and management bonuses.

Quoting shuttle9juliet (Reply 4): disgusting....Even right down to getting rid of the "aunties" now!!!

BA is running a business not a charity.

To pay for investment in new aircraft and to attempt to remain competitive with the M East carriers, the airline has to have a competitive cost base. This means getting rid of uneconomical parts of the business.

Quoting offloaded (Reply 8): Great. Maybe they can address the endless complaints I get from their J class pax on everything from the LGW lounge to the much loathed CE cabin that makes FR and U2 feel luxurious by comparison. I got another one this morning about the food in F on CPT LHR. I miss the days when there were people at BA who actually gave a damn about what we had to say.

If you are getting that many complaints about BA perhaps its time to put your clients on other airlines? Vote with your feet. As long as people continue to put up with it and continue to fly with them they will have no incentive to improve.

Quoting Braybuddy (Reply 9): That's interesting. We've been fed so much propaganda here about what IAG's takeover of Aer Lingus will mean in improvements for the company. I don't necessarily believe bigger is better.

Well, compare BA's track record over the past five years to the ten-fifteen years previously. Not only has BA grown substantially in the past five years to the point of carrying record passenger numbers, it has also grown profitably whilst making very significant investments in fleet renewal. This something it had failed to do in the past. Historically, BA had only been able to maintain and grow profitability by cutting capacity and freezing investment.

In related news, it has been announced that the CFO of IB will take over as CEO of VY, once Cruz leaves to head BA.

Quoting KarelXWB (Reply 2): Thank you low fuel prices.

Actually Willy Walsh was interviewed on BBC Breakfast this morning. He said that they hedge fuel up to 3 years in advance (although obviously not all). He claimed that the net effect of lower oil has not yet fed through to the bottom line. For currency he said it's a "rollercoaster". A lot of both positive and negative but the positive does win overall.

Quoting skipness1E (Reply 5): Business needs to remain competitive

Quoting sam1987 (Reply 10): BA is running a business not a charity. To pay for investment in new aircraft and to attempt to remain competitive with the M East carriers, the airline has to have a competitive cost base.

Not at the cost of passenger safety.

Do I need to bring the aaib report into the unlatched V2500 cowls into this - You know, the one where overworked engineers didn't close the cowls which almost resulted in both engines failing?

Operating profit was (in Euros) 2014 1.39bn, 2015 2.3bn

For 2016, IAG expects to generate an absolute operating profit increase similar to 2015 which implies c 3.2bn. The expected jump in 2016 is because the bad effect past oil price hedging will be quickly fading away. Meanwhile synergy and other operating improvements like code sharing across the four IAG airlines using each sale channel to sell any flight, new centrally managed back office functions being shared across the piece, and if I understand it correctly, similar strategic decisions are in progress towards optimising maintenance.

IAG will now be paying dividends to their long suffering shareholders.

It seems that IAG think leasing firms make a maximum of 9% on their risk capital. IAG is targeting a much higher return, thus it will pay IAG to use leasing more, and conserve their own capital for more beneficial uses. Reading between the lines, this could mean more expansion (both internal and by acquisition), and dividends.

IAG continue to seek good used aeroplanes, it seemed to me they were interested in 777-300 and A380. But this policy would not appear to exclude any type/model currently being operated provided it could be standardised with their existing fleet. No doubt they are also exerting their muscle on manufacturer's pricing of end-of-line models. Either way, IAG win.

IAG are starting to look at a wave of new purchases having effect in a couple of years. Presumable purchased by IAG rather than by individual airlines and then sold to a lessor.

I do not think any of this means reducing head count, rather it seems to imply more expansion. IAG 2015 capacity growth (ASKs) was +8.2%, revenue growth (RPKs) was +9.6%. (Presentation slide 2) IAG seem to be on a roll, where lower unit costs allow more and more profitable frequencies and new destinations to be operated. It is a virtuous circle, which is far from done.

Unlike the other heritage European airlines.

[Edited 2016-02-27 05:23:37]

[Edited 2016-02-27 05:28:09]

Quoting Egerton (Reply 16): IAG continue to seek good used aeroplanes, it seemed to me they were interested in 777-300 and A380.

im sure soon as T7 at JFK can accommodate their 380s........they will fly them there

Quoting scotron11 (Reply 17): im sure soon as T7 at JFK can accommodate their 380s........they will fly them there

T7 won't ever accept accommodate a A380.

Quoting Johnwaynebobbet (Reply 18): T7 won't ever accept accommodate a A380.

depends how they change the former UAL space.....earrly days yet....would be great opportunity to do so

Quoting scotron11 (Reply 19): depends how they change the former UAL space.....earrly days yet....would be great opportunity to do so

Have you ever been to T7?

Quoting Johnwaynebobbet (Reply 20): Have you ever been to T7?

many times....but last was 2003....

Quoting scotron11 (Reply 21): many times....but last was 2003....

Then you will have seen first hand the reasoning why it won't ever see a A380. The size of the terminal, the customs hall, the lounges, the size of the airside departure area, the ramp etc etc.

I can't ever see A380s at T7. I can foresee operations of the type to JFK but only if a terminal change to AA's happens!

Quoting Johnwaynebobbet (Reply 22): The size of the terminal, the customs hall, the lounges, the size of the airside departure area, the ramp etc etc.

yea...but now that UAL is no longer there.....gives them space to use and modify.......not saying it will definitely happen...but it could.

AFAIK they seem very happy with their 380s......passengers like them.....especially premium....and eventually their 744s will go,..leaving only 35Js and 77Ws....unless they are going to use their 787-10s alone.