IAG share price: 3 things to watch out for in its Q1 results
International Airlines Group will release its on Friday, with the British Airways owner unlikely to get off to a flying start in 2019 after warning that profits for the year will be flat.
International Airlines Group (IAG) is set to release its Q1 results on Friday, with investors hoping for more of the same this year after the group recorded record profits in 2018 and generate major returns for shareholders.
But with the British Airways owner already warning shareholders that profits for the year will be flat this financial year, investors will likely be disappointed by the upcoming results this week.
IAG profits flat in 2019
At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items and impacts of IFRS16 to be in line with €3.23 billion reported last year.
Meanwhile, passenger unit revenue is expected to improve at constant currency and non-fuel unit cost is expected to be flat at constant currency.
Rising fuel prices
IAG was able to overcome rising fuel prices in 2018, with the group managing to record a 9.5% increase in profits last year.
‘This was a very good performance despite three significant challenges: fuel prices increasing 30 per cent, considerable air traffic control disruption and an adverse foreign exchange impact of €129 million,’ IAG CEO Willie Walsh said in its full-year results.
This year, the company will face the same trio of headwinds, with investors hoping that the company can weather these issues as well as it did over the previous 12 months.
IAG records increase in passenger numbers
The group, which also owns Spanish airlines Iberia and Vueling, saw its traffic and passenger numbers surge in March, with growth driven by its core domestic units.
IAG saw passenger numbers increase to 9.2 million in March, representing a 5.7% from 8.7 million during the same month a year ago.
In the year to date, IAG reported passenger numbers were up 6.2% to 24.4 million from 23 million. Investors will be hoping that this growth will continue throughout 2019 despite Brexit threatening to weaken demand.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets