Iberia closed 2005 with earnings after tax of 395.8 million euros, 98% more that those posted in 2004, thanks partly to extraordinary income from the sale of Iberia’s stake in Amadeus and Savia.
IBERIA ACHIEVES NET EARNINGS OF 395.8 MILLION EUROS IN 2005
- Operating earnings reached 116.4 million euros, down 35.7% from 2004, chiefly due to the sharp rise in fuel prices (around 42% before hedging)
- The 663 million euros in capital gains from the sale of Iberia’s stake in Amadeus and Savia were partly applied to extraordinary provisions to cover staff restructuring (280 million) and fleet replacement (105 million euros) in keeping with the new 2006-08 Strategic Plan
- The load factor reached a record level of 77.1%, 1.9 points better than that of 2004. It climbed by 3.6 points in the last quarter alone
- Shareholders’ equity came to 1,740 million euros
Capital gains from the sale reached 663 million euros, of which more than half was transferred to provisions for covering staff restructuring expenses (280 million) and fleet replacement (105 million), as called for in the Strategic Plan.
Operating earnings, excluding extraordinary items, came to just 116.4 million euros, which was 35.7% below the amount posted in the previous year. This decline was due mainly to the sharp rise in the cost of aviation fuel, which translated into a 32.5% rise in the company’s outlay on fuel, equivalent to additional spending of 212 million euros in the year.
The EBITDAR reached 699.7 million euros, 6.6% below the 2004 level.
Operating income amounted to 4,929.1 million euros, a 2.8% increase in the year. Passenger revenues reached 3,883.9 million euros, up 3.4%. Unit operating income slipped by 1.3%, though it turned positive in the second half of the year, rising by 3.1%.
Operating expenses came to 4,812.7 million euros, representing a 4.4% increase from 2004, due chiefly to the higher cost of fuel, which amounted to 42% in the open market. If the fuel item is omitted from consideration in 2004 and 2005, operating costs are seen to have declined by 0.3% in 2005, and unit operating spending to have fallen by 4.3%.
A Million More Passengers and a Record Aircraft Occupancy Level
The company carried a total of
27.7 million passengers last year, an increase of nearly one million –or 3.7%– from 2004. Average demand, expressed in revenue passenger kilometres (RPKs) rose by 6.8%, as compared to the 4.2% increase in seat supply (available seat kilometres or ASKs). This meant that the passenger load factor improved by 1.9 points in the year, to set a new company record of 77.1%. The growth of traffic volume and the higher load factor placed Iberia among the top performers of the main members of the Association of European Airlines (AEA)
Iberia’s shareholders’ equity amounted to 1,739.6 million euros on December 31st,2005.
P.S.: Full financial reports are available in English and Spanish
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