Latest news with #intra-Europe
Travel Daily News
12-05-2025
- Business
- Travel Daily News
Strong start to 2025 for IAG, outlook unchanged
IAG reports strong Q1 2025 results, maintains full-year outlook, and orders 53 widebody aircraft to enhance long-haul fleet efficiency. IAG announced 2025 first quarter results and the outloook for the whole year. Also, the Group is ordering 53 new Airbus and Boeing aircraft for its long-haul fleet, comprising 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft, which can be deployed within Aer Lingus, Iberia or LEVEL. Luis Gallego, IAG Chief Executive Officer, said: 'Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation. We continue to deliver on our industry-leading financial targets. We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America and intra-Europe. 'We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty. Our commitment to financial strength and shareholder value is reflected in 530 million euros of share buybacks completed in 2025 so far, alongside a proposed final dividend of 288 million euros, which brings our total dividend for 2024 to 435 million euros.' Highlights Revenue growth of 9.6%, reflecting the strength of our business Operating profit before exceptional items increased by 130 million euros to 198 million euros as strong revenue growth and a lower fuel price offset expected cost increases. Operating margin increased by 1.7 pts to 2.8% Good operational performance, particularly at British Airways. Iberia and Vueling continue to be amongst the most punctual airlines in the world Ordered 71 widebody aircraft to support long-term strategy Stronger balance sheet driven by free cash flow and disciplined capital allocation: net leverage at 0.9x and gross debt reduced by 1,859 million euros compared to 31 December 2024 Delivering for our shareholders through a sustainable dividend and up to €1 billion share buyback Outlook for 2025 Trading Whilst being mindful of the geopolitical and macroeconomic uncertainty, our outlook for the full year is unchanged We are continuing to see good demand for air travel across our core markets and for our brands, highlighting the strength of our portfolio portfolio Latin America and Europe continue to be strong and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure As of 6 May we are around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the secondhalf, broadly in line with last year Modelling assumptions Capacity increase of c.3% is unchanged. We continue to review our plans for the winter season and 2026 Non-fuel unit costs are assumed to increase by around 4% in 2025 including the adverse impact of foreign exchange, weighted to the first half of the year, as previously guided at our Full Year 2024 results Capital expenditure for the year is expected to be around €3.7 billion Total fuel cost is expected to be €7.5 billion (based on jet fuel forward curve and foreign exchange rates at the end of Q1) as the Group benefits from recent falls in the price of oil IAG orders 53 new Airbus and Boeing aircraft for its long-haul fleet International Airlines Group (IAG) is ordering 53 new Airbus and Boeing aircraft for its long-haul fleet, comprising 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft, which can be deployed within Aer Lingus, Iberia or LEVEL. Subject to shareholder approval at the IAG's Annual General Meeting in June, these new aircraft will enable IAG's airlines to grow and replace their long-haul fleets with modern, fuel-efficient planes. The aircraft will be delivered between 2028 and 2033. In addition, the order with Boeing grants British Airways the rights to elect to purchase up to 10 additional Boeing 787 aircraft and the order with Airbus grants IAG the rights to elect to purchase up to 13 additional Airbus A330-900neo aircraft. Of the proposed 53 aircraft, 35 would serve to replace existing aircraft or, in the case of LEVEL, replace short-term leases. As well as the replacements above, the new orders would also allow 18 aircraft for growth in IAG's core markets. The Airbus A330-900neo aircraft will be powered by Rolls-Royce engines. British Airways' Boeing 787-10 aircraft will be powered by General Electric engines. Both engine orders include comprehensive warranty and maintenance packages with Rolls-Royce and General Electric, respectively. These new orders follow orders already placed in March this year, and announced today, for six Airbus A350-900s for Iberia, as well as six Airbus A350-1000s and six Boeing 777-9s for British Airways. Luis Gallego, IAG's CEO, said: 'This order marks another milestone in our strategy and transformation programme and underlines our commitment to strengthening our airline brands and enhancing our customer proposition. Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience, while continuing to drive long-term value for our shareholders.'
Irish Examiner
09-05-2025
- Business
- Irish Examiner
IAG posts profit surge despite €55m loss at Aer Lingus
Aer Lingus and British Airways owner IAG has posted a better-than-expected profit for the first three months of this year, helped by increased demand despite economic uncertainty, the company said on Friday. That was despite losses across Aer Lingus and Vueling, which were offset by strong performances in British Airways and Iberia. Aer Lingus posted a loss of €55m in the first three months of 2025, down from a loss of €82m in the same period last year, with IAG noting: "Aer Lingus and Vueling are more impacted by seasonal variations in operating performance, and both typically report an operating loss in the first quarter." "The €27m reduction in operating loss for Aer Lingus mainly reflected higher yields." Overall, the group's revenue increased by almost 10%, with operating profit before exceptional items increasing by €130m to €198m as strong revenue growth and a lower fuel price offset expected cost increases. IAG also said today it is ordering 53 new Airbus and Boeing aircraft for its long-haul fleet. The order comprises 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft, which can be deployed within Aer Lingus, Iberia or LEVEL. IAG said the new aircraft will enable IAG's airlines to grow and replace their long-haul fleets with modern, fuel-efficient planes and will be delivered between 2028 and 2033. 'Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation," said IAG chief executive, Luis Gallego. "We continue to deliver on our industry-leading financial targets. We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America and intra-Europe. 'We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty." Looking forward, IAG said its outlook for the year remained unchanged, with the group noting: "We are continuing to see good demand for air travel across our core markets and for our brands. "Latin America and Europe continue to be strong, and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure. As of May 6, IAG said it is around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half of 2025, which is broadly in line with last year.
Yahoo
30-04-2025
- Business
- Yahoo
Visa Inc (V) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansions
Net Revenue: $9.6 billion, up 9% year over year. EPS Growth: 10% year over year. Payments Volume Growth: 8% year over year in constant dollars. US Payments Volume Growth: 6% year over year. International Payments Volume Growth: 9% year over year in constant dollars. Cross-Border Volume Growth (Excluding Intra-Europe): 13% year over year in constant dollars. Processed Transactions Growth: 9% year over year. Commercial Volume Growth: 6% year over year in constant dollars. Visa Direct Transactions Growth: 28% year over year. Value-Added Services Revenue Growth: 22% in constant dollars. Operating Expenses Growth: 7% year over year. Tax Rate: 16.9% for the quarter. Share Buyback: $4.5 billion in stock repurchased. Dividends Distributed: $1.2 billion. Warning! GuruFocus has detected 3 Warning Signs with LC. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Visa Inc (NYSE:V) reported strong financial performance with $9.6 billion in net revenue, up 9% year over year, and EPS growth of 10%. Cross-border volume, excluding intra-Europe, rose 13% in constant dollars, showcasing robust international growth. The company added 1 billion tokens since last quarter, reaching a total of 13.7 billion, with nearly 50% of global e-commerce transactions now tokenized. Visa Inc (NYSE:V) continues to expand its acceptance network, adding over 1 million merchant locations in key markets like India, Mexico, and Brazil. Value-added services revenue grew 22% in constant dollars, driven by strong growth across all portfolios, including issuing solutions and advisory services. There is uncertainty in consumer spending, with some deceleration in travel-related categories such as airlines and lodging. Currency weaknesses in certain regions have impacted cross-border volume growth, particularly affecting travel to specific countries. The company faces geopolitical risks and challenges related to operating in highly regulated markets globally. Visa Inc (NYSE:V) anticipates higher growth in client incentives in the second half of the year due to client performance adjustments and deal timing. Despite strong performance, the company acknowledges the potential impacts of economic uncertainty and tariffs on future results. Q: Have you seen any noticeable change in client decision-making or pipeline speed, especially with international clients? A: Ryan McInerney, CEO: The focus has been on sharing data and solutions with clients to help them navigate the current environment. While there could be future discussions about partnerships, the main effort has been on providing clients with the necessary tools and information to manage their businesses effectively. Q: What is your outlook on international travel and its impact on Visa's business? A: Christopher Suh, CFO: The travel situation is fluid, but Visa benefits from a diversified cross-border business. The US is a smaller region for inbound travel, which helps mitigate potential impacts. Visa is monitoring data closely to navigate this period effectively. Q: Can you elaborate on the assumptions for cross-border volume growth for the rest of the year? A: Christopher Suh, CFO: The assumptions are based on the average of March and April, accounting for factors like currency weaknesses and Canada-US travel slowdown. This approach puts cross-border volume growth slightly below Q4 2024 levels. Q: How is Visa's value-added services (VAS) business performing, and what is the outlook? A: Ryan McInerney, CEO: The VAS business is performing well, driven by innovations and a diversified revenue model. Visa is focused on enhancing payments and enabling various types of payments. The business is resilient and expected to continue growing. Q: What are Visa's strategies for navigating geopolitical risks and nationalism? A: Ryan McInerney, CEO: Visa engages regularly with governments and regulators worldwide. Despite challenges, Visa has a proven track record of success in regulated markets. The company tailors strategies to meet the unique needs of clients and partners in each market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Visa Inc (V) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Expanding ...
Net Revenue: $9.5 billion, up 10% year over year. EPS: Up 14% year over year. Payments Volume: Overall growth of 9% in constant dollars; US payments volume grew 7%, international payments volume grew 11%. Cross-Border Volume: Excluding intra-Europe, up 16% in constant dollars. Process Transactions: Grew 11% year over year. Credentials: 4.7 billion, up 7% year over year. Tokens: 12.6 billion, up 44% year over year. New Flows Revenue: Grew 19% year over year in constant dollars. Visa Direct Transactions: Grew 34% year over year. Value-Added Services Revenue: Grew 18% in constant dollars. Operating Expenses: Grew 11% year over year. Tax Rate: 17.7%. Stock Buyback: Approximately $3.9 billion in Q1. Dividends: $1.2 billion distributed to stockholders. Warning! GuruFocus has detected 5 Warning Signs with GSIT. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Visa Inc (NYSE:V) reported a strong start to the fiscal year with $9.5 billion in net revenue, up 10% year over year, and EPS up 14%. Cross-border volume excluding intra-Europe rose 16% in constant dollars, indicating robust international growth. Visa Direct transactions grew 34% year-over-year, highlighting significant expansion in new payment flows. Value-added services revenue grew 18% in constant dollars, driven by strong growth in consulting, marketing services, and risk solutions. Visa Inc (NYSE:V) successfully renewed and expanded several key partnerships globally, including with ICBC in China and ICICI Bank in India, strengthening its international presence. Asia Pacific payments volume growth remained muted, reflecting a challenging macroeconomic environment in the region. Operating expenses grew 11%, driven by increases in personnel and general and administrative expenses, which could impact profitability. The restructuring charge of $213 million related to workforce changes indicates ongoing adjustments and potential disruptions. Visa Inc (NYSE:V) faces potential challenges from a strong US dollar, which could affect cross-border travel and spending patterns. The regulatory environment in the US remains uncertain, which could impact Visa Inc (NYSE:V)'s operations and growth strategies. Q: Can you elaborate on the improved outlook and whether the growth rates are expected to sustain? A: Christopher Suh, Visa Inc's CFO, mentioned that they feel great about the Q1 results. However, they are only one quarter into the year and will provide more updates on the second half as they get closer to it. Q: What factors contributed to the stronger spending results, particularly during the holiday season? A: Christopher Suh explained that the US saw a strong holiday season, benefiting discretionary categories like retail, travel, and entertainment. The lapping of previous impacts also contributed to the step-up in spending. Cross-border e-commerce and travel volumes also showed strong growth. Q: How do you view the potential impact of tariffs on commercial and consumer spending? A: Ryan McInerney, Visa Inc's CEO, stated that they haven't seen any direct impact related to tariffs. It's difficult to predict what will be implemented, and they will assess the impact on their business as more information becomes available. Q: Can you discuss the strategy and potential monetization of tokenization? A: Ryan McInerney highlighted that Visa's tokenization strategy is a significant investment priority. Tokens improve transaction performance and enable innovation. Visa offers services like token credential enrichment and issuer heat maps, which generate revenue and will continue to grow in importance. Q: What is the outlook for Asia Pacific, given its lagging growth compared to other regions? A: Christopher Suh noted that Asia Pacific's growth is moderately up from Q4 but still reflects a somewhat muted environment. The region is growing at 1% in total, indicating a need for further improvement. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Zawya
31-01-2025
- Business
- Zawya
Visa profit beats estimates as discounts fuel holiday shopping splurge
Visa's first-quarter profit beat Wall Street estimates on Thursday, as easing concerns about an economic slowdown and discounts encouraged customers to splurge during the holiday shopping season. Retailers offered deep discounts on everything from apparel to toys and luxury products to lure cost-conscious consumers while online sales remained strong thanks to a boom in mobile shopping. Payments volume — a gauge of overall consumer and business spending on Visa's network — jumped 9%, while revenue rose 10% to $9.5 billion in the quarter. Shares of the world's largest payments processor were up 1.8% after the bell. Visa also benefited from strong domestic and international travel demand, driven by improved pricing and the absence of severe weather-related disruptions. Cross-border volume excluding intra-Europe, a measure of international travel demand, jumped 16%. Processed transactions rose 11% in the quarter. The San Francisco, California-based company posted an adjusted profit of $2.75 per share in the three months ended Dec. 31. Analysts, on average, had expected $2.66 per share, according to data compiled by LSEG. SPENDING OUTLOOK Although higher-for-longer interest rates were expected to be a dampener, consumer spending continues to be underpinned by a solid labor market and continued wage growth. "Consumer spending in the U.S. and around the globe is quite resilient and strong," said Chief Financial Officer Chris Suh in an interview with Reuters. The trend bodes well for Visa and rival Mastercard as they pocket a small fee off each transaction on their networks. Mastercard earlier in the day reported a fourth-quarter profit that beat Wall Street estimates as consumers ramped up spending during the holiday season. Shares of both companies had underperformed the broader markets in 2024 on worries that a slowdown in major global economies could hurt the sector. (Reporting by Jaiveer Singh Shekhawat and Manya Saini in Bengaluru; Editing by Sriraj Kalluvila, Maju Samuel and Alan Barona)
