IAG(ICAGY) - 2019 Q3 - Earnings Call Presentation

Financial Performance - IAG's operating profit for Quarter 3 2019 was €1,425 million, with a 19.5% margin, down 1.9 percentage points compared to the previous year's €1,530 million[3] - The impact of BALPA pilot strikes at British Airways and other disruptions cost the company €155 million in Quarter 3[3] - IAG anticipates its 2019 operating profit before exceptional items to be €215 million lower than the 2018 pro forma of €3,485 million, based on current fuel prices and exchange rates[3, 40] - The company's Return on Invested Capital (RoIC) for the last four quarters was 14.8%[3] Revenue and Cost Analysis - Total unit revenue decreased by 1.1% at constant currency[5] - Passenger unit revenue also decreased by 1.1% at constant currency[5] - Planned capacity growth for Quarter 4 2019 is 1.9%, with full-year 2019 capacity growth expected to be 4.0%[3] - Non-fuel unit costs are expected to improve at constant currency[3] - Non-fuel unit costs increased by 1.1% at constant currency pro forma[5] Regional Performance - Asia Pacific ASK decreased 3.7%[8] - Latin America & Caribbean revenue increased 14.5%[8] Fuel and Hedging - The 2019 fuel bill is projected to be €6.0 billion, based on a jet fuel price of $630 per metric ton and an exchange rate of $1.10 per euro[14] - The company has hedged 96% of its fuel for Q4 2019[13] Pension Agreements - British Airways will make fixed deficit contributions of £450 million per year until March 2023 to the New Airways Pension Scheme (NAPS)[30]