IAG still making a loss

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Viewing 14 posts - 16 through 29 (of 29 total)

  • WillieWelsh
    Participant

    AnthonyDunn – 12/05/2014 07:20 GMT

    I made a very simple point about the loss the IAG has made during the reporting period in question, I didn’t consider other carriers or the wider context in what I wrote, I didn’t intend to and I don’t intend to now. It is not relevant to the subject of this thread.

    I’m glad you are able to recognise that IAG have made a loss, it would help if you didn’t try to divert from reality by posting a lot of spin.

    I’m well aware of variations on reporting periods thank you, as an accountant I find them most interesting.


    AnthonyDunn
    Participant

    @ WillieWelsh – 12/05/2014 14:51 GMT

    As you say, you made a very simple point which I would correct to read “simplistic point” owing to your failure either to do a compare and contrast with other carriers – thereby contextualising – or to acknowledge that there are annual revenue cycles for just about all European airlines – be they BA, LH, ThomsonFly or Ryanair etc. Incidentally, this is far from unique to airlines, try looking at non-food retailers post-Christmas.

    What speaks volumes is that you have not (cannot?) taken issue with either the Financial Times’ transport team or CAPA’s analysis and your only retort is to describe such sources and commentaries as “spin”. The grown-up and intelligent thing would be to set our your case. I would have thought that, being an accountant, you would be amongst those most equipped to dismantle a company’s reporting and counter-critique it. But then to retreat behind “it is not relevant to the subject of this thread” is just childish twaddle. Mind you, you are far from being the first on this forum to attempt to shoot a messenger when they set out something that contravenes a carefully nurtured and well-honed grudge.

    What makes this forum worthwhile (to me) is when people post informative or thought-provoking contributions – even when (particularly when) they do not accord with my own views. Sorry to say but yours, on this thread at least, have failed on both scores and, in the absence of an intelligent exchange, there is no point on dragging this out any further.


    WillieWelsh
    Participant

    Dear AnthonyDunn,

    I am truly sorry that I have failed to live up to your expectations in what I post on this site. I hadn’t realised you had such exacting requirements and will attempt to mend my ways and do better in future. I clearly don’t take the site as seriously as you do and would seek truly informed opinion elsewhere.

    As a small request back, could you please stop posting such boring and repetitive drivel? I don’t usually bother to read your posts but on this occasion you left me no choice and you certainly lived up to my expectations.

    Best wishes,

    Willie Welsh.


    canucklad
    Participant

    I’m clearly not an airline analyst, so please correct me if I’m wrong with this opinion. If I had a stake in how IAG performed it’s the following statement that would concern me most….

    “While IAG’s Barcelona-based budget airline Vueling, which has been taking on rivals such as Ryanair and easyJet, made an operating loss of €30m during the period, flat on the previous year”

    You have a lot more wriggle space with Iberia and BA to manage loss into profit or at least into reducing loss, with a LCC operation where do you go?

    I do totally agree that being fixated with short term number reporting can be very damaging, and in many cases becomes akin to a dog chasing its tail. And in this respect IAG needs time to cure Iberia.


    BusinessBabble
    Participant

    I’m not sure I follow your logic on that one canucklad, LCC’s have to deal with a seasonal business the same, and maybe even to a greater extent given their client base, as the legacy carriers.

    For example and to put in context:

    Easyjet 6 months ending 31 March: 2014 £53m loss; 2013 £61m loss
    Ryanair 3 months ending 31 December: 2013 Eur35.2m loss; 2012 Eur18.1m profit

    I think Ryanair are more aggressive than most at managing the seasonality as they take a large number of planes (and presumably the corresponding crew) out of service over the quieter winter months.


    transtraxman
    Participant

    A good piece of news today direct from IAG for its shareholders.
    In its six months results reported today…
    ” Operating profit for the half year €230 million (2013: operating loss €33 million before exceptional items), €263 million better than last year “
    “”British Airways’ operating profit was €332 million in the quarter, up from €247 million last year while Iberia made an operating profit of €16 million, compared to an operating loss of €35 million last year. Vueling’s operating profit was €30 million, up from €27 million last year.”

    http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-newsArticle_Print&ID=1954064&highlight=

    This is the Beeb´s short report on the same.
    “BA owner IAG moves into profit”

    http://www.bbc.com/news/business-28598905

    These results trigger the purchase of new long-haul aircraft for Iberia, which can only be good for the traveller.
    “International Airlines Group (IAG) is converting eight Airbus A350-900 aircraft options into firm orders and securing eight A330-200 aircraft for Iberia”

    http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-newsArticle_Print&ID=1954065&highlight=


    AnthonyDunn
    Participant

    Reported in today’s Torygraph that IAG has now achieved its first ever Q1 profit, off the back of cost control (tell us about it!) across each of the three carriers and revenue growth, notably buoyant trans-Atlantic traffic flows.

    http://www.telegraph.co.uk/finance/newsbysector/transport/11572851/Increased-trans-Atlantic-business-helps-IAG-to-its-first-ever-first-quarter-profit.html?WT.mc_id=e_DM14626&WT.tsrc=email&etype=Edi_Cit_New_Tue_9Sections&utm_source=email&utm_medium=Edi_Cit_New_Tue_9Sections_2015_04_30&utm_campaign=DM14626


    SimonS1
    Participant

    Revenues up 12% – I suppose all the people threatening not to fly BA delayed their implementation until 1st April 😉


    LuganoPirate
    Participant

    Lower fuel costs must have had something to do with it as well I’d have thought?


    SimonS1
    Participant

    Indeed – down 11% although the actual number was the same.


    MrMichael
    Participant

    Interesting that Vueling is still making a loss. I am still not convinced of the Vueling business model. Claims it is a loCo but flies in to LHR.

    The Iberia results improving is perhaps a salutary lesson to LH and AF who have yet to take on the unions head on. Prancing around the ring Eubanks style with the unions is not the way, they need to take some punches and then knock em out, just like BA and Iberia and to some extent Alitalia.


    LuganoPirate
    Participant

    Agree MrMichael. While it’s right they should be paid a decent salary I just wonder if they don’t realise that if LH/AF price themselves out of the market there’ll be no job and likely no airline?


    openfly
    Participant

    Hi LP…….. The reduced oil price cannot possibly have affected the profit and loss for the last year, or even the next year, because BA management keep telling us that they had forward bought all their fuel at a high price for two years. That us why “they cannot reduce the fuel surcharge”!!!!

    They keep tripping over their forked tongues! :-))


    SimonS1
    Participant

    @openfly

    According to the IAG accounts their fuel bill fell 11% for the first quarter year on year.

    I believe that between December and January the long haul fuel surcharge (or “carrier imposed surcharge” as they now call it) fell from £239 to £209 in economy and £359 to £329 in premium cabins or around 10%.

    Seems fairly consistent to me.

Viewing 14 posts - 16 through 29 (of 29 total)
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