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IAG Q1 Profit Declines; Revenue Up 5.9% - Quick Facts

International Consolidated Airlines Group (IAG.L,BAIRY.PK,BAY.L) said it remained profitable and recorded an operating profit of 135 million euros in a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter.

For the first-quarter, on statutory basis, profit after tax and exceptional items was 70 million euros compared to 794 million euros, prior year. In the previous year, the Group recognised an exceptional gain of 678 million euros, due to the closure of British Airways' NAPS and BARP pension schemes, and an exceptional charge of 39 million euros related to the continuation of British Airways' transformation initiatives. Basic earnings per share was 3.7 in euro cents compared to 38.5 euro cents.

For the first-quarter, before exceptional items, operating profit was 135 million euros, compared to 340 million euros, pro forma, previous year. Before exceptional items, profit after tax was 70 million euros, down 62.6 percent year-on-year. Adjusted earnings per share was 3.7 in euro cents compared to 8.7 euro cents, pro forma, last year.

First-quarter total revenue was 5.32 billion euros, up 5.9% from previous year. Passenger unit revenue for the quarter was down 0.8 percent, down 1.4 percent at constant currency.

Currently, IAG projects 2019 operating profit before exceptional items to be in line with 2018 pro forma. Passenger unit revenue is expected to be flat at constant currency and non-fuel unit cost is expected to improve at constant currency. The Group expects passenger unit revenue at constant currency to improve for the remainder of the year.

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