[Anonymous]

[Potakas]

On Friday, February 25, 2011 9:00 a.m. UKT / 10:00 a.m. CET

IAG will publish those financial results,

It is going to be a Webcast presentation.

For more Info here:

http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-EventDetails&EventId=3759008

Regards

[Potakas]

International Cons Airlines Group
25 February 2011

RESULTS ANNOUNCEMENT

Period January 1, 2010 – December 31, 2010 (Unaudited)

IAG PRO-FORMA RESULTS

International Airlines Group today (February 25) presented results to December 31, 2010. These comprise combined IAG three month and full year results, Iberia’s full year results and British Airways’ nine month results. The results are for the period before the two airlines merged in January 2011.

IAG period highlights:

· Operating profit for the quarter to December 31, 2010 of €6 million (2009: Operating loss €114 million)

· Excluding disruption and a number of non-recurring items, the quarterly profit would have been €196 million

· Profit before tax for the quarter of €21m (2009: loss before tax of €208m)

· Revenue for the quarter rose by 13.4 per cent to €3,812 million (2009: €3,362 million)

· Fuel costs were up 5.2 per cent to €989 million

· Other operating costs were up 11.1 per cent (€281 million) at €2,817 million, including adverse currency translation of

€103 million. Other costs included non-recurring items of €119 million and a €43 million year-end bonus provision.

· Year over year cash and cash equivalents up €811 million to €4,352 million.

· Group net debt at December 31, 2010 was down by €430 million to €895 million (2009: €1,325 million)

International Airlines Group chief executive, Willie Walsh, said: “The combined group figures for the final quarter of 2010 show a return to profitability, versus last year, with a good revenue performance based on strong yields and a small capacity increase.

“The quarterly profit was affected by severe weather in the UK and a Spanish air traffic controllers’ strike which disrupted the airlines’ operations and reduced revenue by €71 million. There were also a number of non-recurring costs totalling €119 million including provision for Iberia restructuring costs, impairment charges associated with the decision to scrap two British Airways Boeing 747 aircraft and merger completion costs. In addition, there was a €43 million bonus provision after performance criteria were met.

“Both airlines’ cargo businesses continued to perform well with revenue up 28.2 per cent based on strong yields and volume increases.

“The current political instability in the Middle East and its impact on fuel prices is being monitored closely”.

International Airlines Group chairman, Antonio Vázquez, said: “Following the completion of the merger last month, IAG is today presenting its airlines’ results for 2010 on a pro-forma and individual basis.

“Last year, the IAG airlines recovered from the previous years’ losses and returned to profit despite a number of significant external events. The combined operating profit was €225 million with revenue up by 10 per cent while capacity levels were down. IAG’s cash position remains very strong at €4,352 million with net debt falling by €430 million to €895 million.

“We are confident that we are on track to deliver our synergy targets”.

Financial review:

Revenue for the 3 months to December 31, 2010 rose by 13.4 per cent to €3,812 million (2009: €3,362 million). Passenger revenue was up 15.6 per cent on capacity growth (ASKs) of 2.7 per cent and improved unit passenger revenues (€cents per ASK) of 12.7 per cent. At constant exchange rates total revenue was up 7.5 per cent, or €253 million with passenger revenue up 9.6 per cent and unit passenger revenues up 6.8 per cent.

Cargo revenue for the quarter was up 28.2 per cent with continued strong yields and volume increases.

Operating costs for the quarter were up 9.5 per cent to €3,806 million influenced by several non-recurring items, a bonus provision, as well as increases due to currency changes of 6.3 per cent. Excluding these items other operating costs were up 2.3 per cent year over year on increased capacity of 2.7 per cent. Fuel costs were up 5.2 per cent or €49 million in the quarter.

Non-recurring costs include impairment costs related to the scrapping of two Boeing 747 aircraft costing €19 million and merger completion costs of €26 million. A €43 million bonus provision was included for the airlines.

Non-operating results for the quarter improved by €109 million, mainly due to reduced expenses relating to pensions of €47 million and the profit on disposal of 1.5 per cent of Amadeus by Iberia for a profit €90 million.

The UK Government has now decided to use the Consumer Price Index (CPI) to set each Annual Review Orders (AROs). Based on this change, British Airways has seen a reduction in the present value of its two main defined benefit pension scheme liabilities of £770 million (€915 million). The overall decrease in the net pension deficit is approximately £1.3 billion (€1.5 billion).

Profit before tax for the quarter was €21 million, up €229 million on last year.

The tax for the quarter reflects deferred tax adjustments related to the IFRIC 14 adjustment on the APS surplus increase as at December 31, 2010.

The Group’s cash position remains very strong with cash and cash equivalents up by €811 million of €4,352 million. The net debt of the Group has fallen by €430 million to €895 million compared to December 31 2009. Adjusted gearing (including off balance sheet leases) at December 31, 2010 had improved by 8 points to 47 per cent.

The Directors of British Airways and Iberia have decided to apply all the post-tax distributable profits for the period ended December 31, 2010 to reserves.

Principal risk and uncertainties

Both British Airways and Iberia continued to maintain and operate structures and processes to identify, assess and manage risks. The principal risks and uncertainties affecting the group are detailed in the annual reports of both British Airways and Iberia.

The risks include brand reputation, competition, consolidation/deregulation, debt funding, economic conditions, employee relations, events causing long-term network disruption, failure of a critical IT system, fuel price and currency fluctuation, fuel supply, government intervention, Heathrow operational constraints, key supplier risk, pandemic, pensions and safety/security incident.

Related parties

Related party disclosures are given in note 18 of the British Airways condensed consolidated financial information.

Trading Outlook

Our longhaul business remains strong, particularly in the premium sector, but the shorthaul European market continues to be highly competitive. We are monitoring the impact of the current Middle East instability on fuel prices and have the flexibility to change our capacity plans if necessary.

ends

February 25, 2011 IAG O4

[Potakas]

Here is the .pdf

http://media.corporate-ir.net/media_files/IROL/24/240949/IAG_results_2010.pdf

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