€ million | Note | 2023 | 2022 |
Passenger revenue | | ||
Cargo revenue | |||
Other revenue | 5 | ||
Total revenue | 5 | ||
Employee costs | 8 | ||
Fuel, oil costs and emissions charges | |||
Handling, catering and other operating costs | |||
Landing fees and en-route charges | |||
Engineering and other aircraft costs | |||
Property, IT and other costs | 6 | ||
Selling costs | |||
Depreciation, amortisation and impairment | 6 | ||
Net gain on sale of property, plant and equipment | ( | ( | |
Currency differences | |||
Total expenditure on operations | |||
Operating profit | |||
Finance costs | 9 | ( | ( |
Finance income | 9 | ||
Net change in fair value of financial instruments | 9 | ( | |
Net financing credit relating to pensions | 9 | ||
Net currency retranslation credits/(charges) | ( | ||
Other non-operating credits | 9 | ||
Total net non-operating costs | ( | ( | |
Profit before tax | |||
Tax | 10 | ( | |
Profit after tax for the year | |||
Attributable to: | |||
Equity holders of the parent | |||
Non-controlling interest | |||
Basic earnings per share (€ cents) | 11 | ||
Diluted earnings per share (€ cents) | 11 | ||
1 | The 2022 results include a reclassification to conform with the current year presentation for the Net gain on sale of property, plant and equipment. | ||
There is no impact on the Profit after tax. Further information is given in note 2. |
€ million | Note | 2023 | 2022 |
Items that may be reclassified subsequently to net profit | |||
Cash flow hedges: | |||
Fair value movements in equity | 30d | ( | |
Reclassified and reported in net profit | 30d | ( | ( |
Fair value movements on cost of hedging | ( | ( | |
Cost of hedging reclassified and reported in net profit | |||
Currency translation differences | 33 | ( | |
Items that will not be reclassified to net profit | |||
Fair value movements on other equity investments | 19 | ||
Fair value movements on liabilities attributable to credit risk changes | ( | ( | |
Remeasurements of post-employment benefit obligations | ( | ||
Remeasurements of long-term employee-related provisions | ( | ||
Total other comprehensive (loss)/income for the year, net of tax | ( | ||
Profit after tax for the year | |||
Total comprehensive income for the year | | ||
Total comprehensive income is attributable to: | |||
Equity holders of the parent | |||
Non-controlling interest | 33 | ||
31 December | 31 December | ||
€ million | Note | 2023 | 2022 |
Non-current assets | |||
Property, plant and equipment | 13 | | |
Intangible assets | 17 | ||
Investments accounted for using the equity method | 18 | ||
Other equity investments | 19 | ||
Employee benefit assets | 34 | ||
Derivative financial instruments | 30 | ||
Deferred tax assets | 10 | ||
Other non-current assets | 20 | ||
Current assets | |||
Non-current assets held for sale | 16 | ||
Inventories | 21 | ||
Trade receivables | 20 | ||
Other current assets | 20 | ||
Current tax receivable | 10 | ||
Derivative financial instruments | 30 | ||
Current interest-bearing deposits | 22 | ||
Cash and cash equivalents | 22 | ||
Total assets | |||
Shareholders’ equity | |||
Issued share capital | 31 | ||
Share premium | 31 | ||
Treasury shares | ( | ( | |
Other reserves | ( | ( | |
Total shareholders’ equity | |||
Non-controlling interest | 33 | ||
Total equity | |||
Non-current liabilities | |||
Borrowings | 26 | ||
Employee benefit obligations | 34 | ||
Deferred tax liability | 10 | ||
Provisions | 27 | ||
Deferred revenue | 24 | ||
Derivative financial instruments | 30 | ||
Other long-term liabilities | 25 | ||
Current liabilities | |||
Borrowings | 26 | ||
Trade and other payables | 23 | ||
Deferred revenue | 24 | ||
Derivative financial instruments | 30 | ||
Current tax payable | 10 | ||
Provisions | 27 | ||
Total liabilities | |||
Total equity and liabilities |
Year to 31 December | |||
€ million | Note | 2023 | 2022 |
Cash flows from operating activities | |||
Operating profit | | ||
Depreciation, amortisation and impairment | 6 | ||
Net gain on disposal of property, plant and equipment | ( | ( | |
Employer contributions to pension schemes | ( | ( | |
Pension scheme service costs | 34 | ||
Increase in provisions | 35 | ||
Unrealised currency differences | |||
Other movements | 35 | ||
Interest paid | ( | ( | |
Interest received | |||
Tax paid | ( | ( | |
Net cash flows from operating activities before movements in working capital | |||
Increase in trade receivables | ( | ( | |
Increase in inventories | ( | ( | |
Increase in other receivables and current assets | ( | ( | |
Increase in trade payables | |||
Increase in deferred revenue | |||
Increase in other payables and current liabilities | |||
Net movement in working capital | ( | ||
Net cash flows from operating activities | |||
Cash flows from investing activities | |||
Acquisition of property, plant and equipment and intangible assets | 35 | ( | ( |
Sale of property, plant and equipment and intangible assets | |||
Proceeds from sale of investments | |||
Increase in other current interest-bearing deposits | ( | ( | |
Payment to Globalia for convertible loan | ( | ||
Other investing movements | |||
Net cash flows from investing activities | ( | ( | |
Cash flows from financing activities | |||
Proceeds from borrowings | 35 | ||
Repayment of borrowings | 35 | ( | ( |
Repayment of lease liabilities | 35 | ( | ( |
Settlement of derivative financial instruments | 35 | ( | |
Acquisition of treasury shares | ( | ( | |
Net cash flows from financing activities | ( | ( | |
Net (decrease)/increase in cash and cash equivalents | ( | ||
Net foreign exchange differences | ( | ( | |
Cash and cash equivalents at 1 January | |||
Cash and cash equivalents at year end | 22 | ||
Reconciliation to Total cash, cash equivalents and other interest-bearing deposits | 2023 | 2022 | |
Cash and cash equivalents at year end | 22 | ||
Interest-bearing deposits maturing after more than three months | 22 | ||
Cash, cash equivalents and other interest-bearing deposits | 22 |
Issued | Non- | |||||||
share | Share | Treasury | Other | Total | controlling | |||
capital | premium | shares | reserves | Retained | shareholders’ | interest | Total | |
€ million | (note 31) | (note 31) | (note 31) | (note 33) | earnings | equity | (note 33) | equity |
1 January 2023 | ( | ( | ( | |||||
Profit for the year | ||||||||
Other comprehensive income for the year | ||||||||
Cash flow hedges reclassified and reported | ||||||||
in net profit: | ||||||||
Fuel and oil costs | ( | ( | ( | |||||
Currency differences | ( | ( | ( | |||||
Finance costs | ( | ( | ( | |||||
Ineffectiveness recognised in other non- operating costs | ( | ( | ( | |||||
Net change in fair value of cash flow hedges | ( | ( | ( | |||||
Net change in fair value of equity | ||||||||
investments | ||||||||
Net change in fair value of cost of hedging | ( | ( | ( | |||||
Cost of hedging reclassified and reported in net profit | ||||||||
Fair value movements on liabilities | ||||||||
attributable to credit risk changes | ( | ( | ( | |||||
Currency translation differences | ||||||||
Remeasurements of post-employment | ||||||||
benefit obligations | ( | ( | ( | |||||
Remeasurements of long-term employee- related provisions | ( | ( | ( | |||||
Total comprehensive income for the year | ( | |||||||
Hedges transferred and reported in property, plant and equipment | ( | ( | ( | |||||
Hedges transferred and reported in sales in advance of carriage | ||||||||
Hedges transferred and reported in inventory | ( | ( | ( | |||||
Cost of share-based payments | ||||||||
Vesting of share-based payment schemes | ( | ( | ( | |||||
Acquisition of treasury shares | ( | ( | ( | |||||
31 December 2023 | ( | ( | ( |
Issued | Non- | |||||||
share | Share | Treasury | Other | Total | controlling | |||
capital | premium | shares | reserves | Retained | shareholders’ | interest | Total | |
€ million | (note 31) | (note 31) | (note 31) | (note 33) | earnings | equity | (note 33) | equity |
1 January 2022 | ( | ( | ( | |||||
Profit for the year | ||||||||
Other comprehensive income for the year | ||||||||
Cash flow hedges reclassified and reported in net profit: | ||||||||
Fuel and oil costs | ( | ( | ( | |||||
Currency differences | ( | ( | ( | |||||
Finance costs | ||||||||
Discontinuance of hedge accounting | ( | ( | ( | |||||
Ineffectiveness recognised in other non-operating costs | ( | ( | ( | |||||
Net change in fair value of cash flow | ||||||||
hedges | ||||||||
Net change in fair value of equity | ||||||||
investments | ||||||||
Net change in fair value of cost of hedging | ( | ( | ( | |||||
Cost of hedging reclassified and reported | ||||||||
in net profit | ||||||||
Fair value movements on liabilities | ||||||||
attributable to credit risk changes | ( | ( | ( | |||||
Currency translation differences | ( | ( | ( | |||||
Remeasurements of post-employment | ||||||||
benefit obligations | ||||||||
Remeasurements of long-term employee- related provisions | ||||||||
Total comprehensive income for the year | ||||||||
Hedges transferred and reported in property, plant and equipment | ( | ( | ( | |||||
Hedges transferred and reported in sales | ||||||||
in advance of carriage | ||||||||
Hedges transferred and reported in inventory | ( | ( | ( | |||||
Cost of share-based payments | ||||||||
Vesting of share-based payment | ||||||||
schemes | ( | ( | ( | |||||
Acquisition of treasury shares | ( | ( | ( | |||||
Redemption of convertible bond | ( | |||||||
31 December 2022 | ( | ( | ( |
Percentage of forecast emission allowances required | |
Within 12 months | 100 % |
1-2 years | 62 % |
2-3 years | 24 % |
2023 | |||||||
British | Aer | IAG | Other Group | ||||
€ million | Airways | Iberia | Vueling | Lingus | Loyalty | companies | Total |
Revenue | |||||||
Passenger revenue | 14,204 | 5,215 | 3,180 | 2,194 | 679 | 338 | 25,810 |
Cargo revenue | 862 | 233 | – | 55 | – | 6 | 1,156 |
Other revenue | 962 | 986 | 17 | 10 | 512 | – | 2,487 |
External revenue | 16,028 | 6,434 | 3,197 | 2,259 | 1,191 | 344 | 29,453 |
Inter-segment revenue | 431 | 524 | 1 | 15 | 294 | 392 | 1,657 |
Segment revenue | 16,459 | 6,958 | 3,198 | 2,274 | 1,485 | 736 | 31,110 |
Depreciation and amortisation charge | (1,168) | (409) | (259) | (150) | (11) | (66) | (2,063) |
Operating profit/(loss) | 1,650 | 940 | 396 | 225 | 321 | (25) | 3,507 |
Net non-operating costs | (451) | ||||||
Profit before tax | 3,056 | ||||||
Total assets | 22,255 | 9,454 | 3,049 | 1,999 | 3,786 | (2,863) | 37,680 |
Total liabilities | (19,295) | (8,390) | (3,461) | (1,856) | (3,115) | 1,715 | (34,402) |
2022 | |||||||
British | IAG | Other Group | |||||
€ million | Airways | Iberia | Vueling | Aer Lingus | Loyalty | companies | Total |
Revenue | |||||||
Passenger revenue | 10,523 | 4,002 | 2,584 | 1,665 | 451 | 233 | 19,458 |
Cargo revenue | 1,239 | 284 | – | 80 | – | 12 | 1,615 |
Other revenue | 848 | 799 | 14 | 10 | 322 | – | 1,993 |
External revenue | 12,610 | 5,085 | 2,598 | 1,755 | 773 | 245 | 23,066 |
Inter-segment revenue | 311 | 426 | – | 14 | 228 | 378 | 1,357 |
Segment revenue | 12,921 | 5,511 | 2,598 | 1,769 | 1,001 | 623 | 24,423 |
Depreciation and amortisation charge | (1,272) | (371) | (222) | (146) | (8) | (59) | (2,078) |
Impairment reversal | – | – | 8 | – | – | – | 8 |
Operating profit/(loss) | 366 | 389 | 195 | 57 | 282 | (11) | 1,278 |
Exceptional items | 23 | – | 8 | – | – | – | 31 |
Operating profit/(loss) before exceptional items | 343 | 389 | 187 | 57 | 282 | (11) | 1,247 |
Net non-operating costs | (863) | ||||||
Profit before tax | 415 | ||||||
Total assets | 23,788 | 9,200 | 3,177 | 1,946 | 3,303 | (2,111) | 39,303 |
Total liabilities | (20,975) | (9,005) | (3,774) | (1,942) | (2,914) | 1,329 | (37,281) |
Year to 31 December | ||
€ million | 2023 | 2022 |
Holiday and hotel services | 938 | 805 |
Maintenance and overhaul services | 683 | 528 |
Brand and marketing | 347 | 267 |
Ground handling services | 195 | 193 |
Other | 324 | 200 |
2,487 | 1,993 |
Year to 31 December | ||
€ million | 2023 | 2022 |
UK | 10,177 | 7,923 |
Spain | 5,234 | 4,313 |
USA | 5,069 | 3,735 |
Rest of world | 8,973 | 7,095 |
29,453 | 23,066 |
Property, | ||
plant and | Intangible | |
€ million | equipment | assets |
UK | 12,764 | 1,685 |
Spain | 5,644 | 1,569 |
USA | 100 | 18 |
Rest of world | 1,268 | 637 |
19,776 | 3,909 |
Property, | ||
plant and | Intangible | |
€ million | equipment | assets |
UK | 12,026 | 1,490 |
Spain | 5,082 | 1,462 |
USA | 47 | 9 |
Rest of world | 1,191 | 595 |
18,346 | 3,556 |
€ million | 2023 | 2022 |
Depreciation charge on right of use assets | 1,077 | 1,092 |
Depreciation charge on owned assets | 768 | 748 |
Gain arising on de-designation of foreign exchange hedges recorded in Depreciation | – | (29) |
Amortisation and impairment of intangible assets | 193 | 218 |
Impairment reversal on right of use assets | – | (8) |
Depreciation charge on other leasehold assets | 25 | 49 |
2,063 | 2,070 |
Cost of inventories: | ||
€ million | 2023 | 2022 |
Cost of inventories recognised as an expense | 1,165 | 749 |
1,165 | 749 |
€ million | 2023 | 2022 |
IT costs | 365 | 340 |
Property costs | 296 | 293 |
Insurance costs, professional fees and other costs | 397 | 317 |
1,058 | 950 |
€’000 | 2023 | 2022 |
Fees payable for the audit of the Group and individual accounts | 6,929 | 6,378 |
Fees payable for other services: | ||
Audit of the Group’s subsidiaries pursuant to legislation | 1,284 | 985 |
Other services pursuant to legislation | 218 | 195 |
Other audit and assurance services | 1,589 | 1,644 |
Services relating to working capital review | – | 1,022 |
10,020 | 10,224 |
€ million | 2023 | 2022 |
Wages and salaries | 3,711 | 3,207 |
Social security costs | 604 | 519 |
Costs related to pension scheme benefits | 297 | 272 |
Share-based payment charge | 52 | 39 |
Other employee costs | 759 | 610 |
Total employee costs | 5,423 | 4,647 |
2023 | 2022 | |||||||
31 December 2023 | 31 December 2022 | |||||||
Average | Average | |||||||
number of | Number of | Percentage | number of | Number of | Percentage | |||
employees | employees | of women | employees | employees | of women | |||
In the air: | ||||||||
Cabin crew | 23,473 | 24,004 | 70 % | 19,801 | 22,278 | 70 % | ||
Pilots | 8,085 | 8,223 | 7 | % | 7,340 | 7,864 | 7 | % |
On the ground: | ||||||||
Airports | 16,395 | 16,784 | 37 % | 13,798 | 15,087 | 38 % | ||
Corporate | 14,774 | 15,586 | 48 % | 11,741 | 13,819 | 49 % | ||
Maintenance | 6,813 | 6,972 | 8 | % | 6,908 | 6,775 | 8 | % |
Senior leaders | 222 | 225 | 36 % | 212 | 221 | 34 % | ||
69,762 | 71,794 | 44 % | 59,800 | 66,044 | 44 % |
€ million | 2023 | 2022 |
Interest expense on: | ||
Bank borrowings | (237) | (191) |
Asset financed liabilities | (170) | (107) |
Lease liabilities | (508) | (464) |
Bonds | (63) | (83) |
Provisions unwinding of discount | (103) | (43) |
Other borrowings | (42) | (102) |
Capitalised interest on progress payments | 28 | 11 |
Other finance costs | (18) | (38) |
(1,113) | (1,017) |
€ million | 2023 | 2022 |
Interest on other interest-bearing deposits, cash and cash equivalents | 386 | 51 |
Other finance income | – | 1 |
386 | 52 |
€ million | 2023 | 2022 |
Net change in the fair value of convertible bond (note 26b) | (11) | 159 |
Net fair value losses on financial assets at fair value through profit or loss | – | (35) |
Net fair value losses on de-recognition of financial assets and recognition of other equity investment | – | (43) |
(11) | 81 |
€ million | 2023 | 2022 |
Net financing credit relating to pensions | 103 | 26 |
€ million | 2023 | 2022 |
Gain on sale of investments | 10 | – |
Credit/(charge) related to equity investments (note 19) | 3 | (3) |
Share of profits in investments accounted for using the equity method (note 18) | 6 | 5 |
Realised (losses)/gains on derivatives not qualifying for hedge accounting | (23) | 190 |
Unrealised gains/(losses) on derivatives not qualifying for hedge accounting | 13 | (82) |
Net change in the fair value associated with fair value hedges (note 30) | (1) | – |
8 | 110 |
2023 | 2022 | |||||||
Other | Recognised | Other | Recognised | |||||
Income | comprehensive | directly in | Income | comprehensive | directly in | |||
€ million | statement | income | equity | Total | statement | income | equity | Total |
Current tax | ||||||||
Movement in respect of prior years | (1) | – | – | (1) | (6) | – | – | (6) |
Movement in respect of current year | (206) | 8 | – | (198) | (64) | 3 | – | (61) |
Total current tax | (207) | 8 | – | (199) | (70) | 3 | – | (67) |
Deferred tax | ||||||||
Movement in respect of prior years | (10) | (2) | 12 | – | (36) | (2) | – | (38) |
Movement in respect of current year | (171) | 106 | (17) | (82) | 105 | (60) | 5 | 50 |
Rate change/rate | ||||||||
differences | (13) | 3 | – | (10) | 17 | (10) | – | 7 |
Total deferred tax | (194) | 107 | (5) | (92) | 86 | (72) | 5 | 19 |
Total tax | (401) | 115 | (5) | (291) | 16 | (69) | 5 | (48) |
€ million | 2023 | 2022 |
Balance at 1 January | 64 | (5) |
Income statement | (207) | (70) |
Other comprehensive income | 8 | 3 |
Cash | 291 | 134 |
Exchange movements and other | 1 | 2 |
Balance at 31 December | 157 | 64 |
Current tax asset | 159 | 72 |
Current tax liability | (2) | (8) |
Balance at 31 December | 157 | 64 |
Tax loss | ||||||||||
Employee | Share- | carried | ||||||||
Right of | leaving | Employee | Fair value | based | forward | Other | ||||
Fixed | use | Lease | indemnities | benefit | gains/ | payment | and tax | temporary | ||
€ million | assets | assets | liabilities | and others | plans | losses 1 | schemes | credits | differences | Total |
Balance at 1 January 2023 | (680) | (44) | 9 | 197 | 54 | (3) | 17 | 1,636 | 96 | 1,282 |
Income statement | (325) | 68 | (2) | 11 | (1) | – | 9 | 78 | (32) | (194) |
Other comprehensive income | – | – | – | 6 | (8) | 114 | – | (3) | (2) | 107 |
Recognised directly in equity | – | – | – | – | – | (5) | – | – | – | (5) |
Exchange movements and other | (8) | – | – | – | – | 15 | – | 10 | (9) | 8 |
Balance at 31 December 2023 | (1,013) | 24 | 7 | 214 | 45 | 121 | 26 | 1,721 | 53 | 1,198 |
Balance at 1 January 2022 | (477) | (220) | 19 | 196 | 62 | 57 | 11 | 1,573 | 61 | 1,282 |
Income statement | (194) | 169 | (9) | 19 | 1 | – | 6 | 87 | 7 | 86 |
Other comprehensive income | – | – | – | (17) | (12) | (46) | – | 3 | – | (72) |
Recognised directly in equity | – | – | – | – | – | 5 | – | – | – | 5 |
Exchange movements and other | (9) | 7 | (1) | (1) | 3 | (19) | – | (27) | 28 | (19) |
Balance at 31 December 2022 | (680) | (44) | 9 | 197 | 54 | (3) | 17 | 1,636 | 96 | 1,282 |
€ million | 2023 | 2022 |
Deferred tax asset | 1,202 | 1,282 |
Deferred tax liability | (4) | – |
Balance at 31 December | 1,198 | 1,282 |
€ million | 2023 | 2022 |
Accounting profit before tax | 3,056 | 415 |
Weighted average tax charge of the Group | (718) | (102) |
Unrecognised losses and deductible temporary differences arising in the year | 11 | (2) |
Fair value movement on convertible bond | 30 | – |
Effect of tax rate changes | (13) | 17 |
Prior year tax assets recognised | 289 | 153 |
Effect of lower tax rate in the Canary Islands | 3 | 5 |
Movement in respect of prior years | (11) | (42) |
Employee benefit plans accounted for net of withholding tax | 22 | 3 |
Non-deductible expenses | (21) | (22) |
Other items | 7 | 6 |
Tax (charge)/credit in the Income statement | (401) | 16 |
€ million | 2023 | 2022 |
Payroll related taxes | 604 | 522 |
UK Air Passenger Duty | 936 | 722 |
1,540 | 1,244 |
€ million | 2023 | 2022 |
Income tax losses | ||
Spanish corporate income tax losses | 569 | 1,596 |
Openskies SASU trading losses | 406 | 405 |
UK trading losses | – | 72 |
Other trading losses | 13 | 11 |
988 | 2,084 | |
Other losses and temporary differences | ||
Spanish deductible temporary differences | 238 | 481 |
UK capital losses | 341 | 343 |
Irish capital losses | 17 | 17 |
596 | 841 |
€ million | 2023 | 2022 |
Earnings attributable to equity holders of the parent for basic earnings per share | 2,655 | 431 |
Income statement impact of convertible bonds | 15 | (104) |
Diluted earnings attributable to equity holders of the parent for diluted earnings per share | 2,670 | 327 |
2023 | 2022 | |
Number | Number | |
‘000 | ‘000 | |
Weighted average number of ordinary shares in issue used for basic earnings per share | 4,932,631 | 4,958,420 |
Assumed conversion on convertible bonds | 244,851 | 299,557 |
Dilutive employee share schemes outstanding | 99,093 | 86,175 |
Weighted average number of ordinary shares used for diluted earnings per share | 5,276,575 | 5,344,152 |
€ cents | 2023 | 2022 |
Basic earnings per share | 53.8 | 8.7 |
Diluted earnings per share | 50.6 | 6.1 |
€ million | Fleet | Property | Equipment | Total |
Cost | ||||
Balance at 1 January 2022 | 25,996 | 3,125 | 1,450 | 30,571 |
Additions | 3,765 | 61 | 101 | 3,927 |
Modification of leases | 241 | 129 | – | 370 |
Disposals | (1,700) | (406) | (120) | (2,226) |
Reclassifications | (4) | – | – | (4) |
Transfers to Non-current assets held for sale (note 16) | (44) | – | – | (44) |
Exchange movements | (552) | (73) | (31) | (656) |
Balance at 31 December 2022 | 27,702 | 2,836 | 1,400 | 31,938 |
Additions | 3,543 | 47 | 163 | 3,753 |
Modification of leases | 224 | 204 | 1 | 429 |
Disposals | (1,360) | (35) | (40) | (1,435) |
Reclassifications | (2) | (1) | (7) | (10) |
Exchange movements | 264 | 35 | 15 | 314 |
Balance at 31 December 2023 | 30,371 | 3,086 | 1,532 | 34,989 |
Depreciation and impairment | ||||
Balance at 1 January 2022 | 10,880 | 1,473 | 1,057 | 13,410 |
Depreciation charge for the year | 1,642 | 168 | 79 | 1,889 |
Impairment reversal for the year | (8) | – | – | (8) |
Disposals | (857) | (403) | (107) | (1,367) |
Transfers to Non-current assets held for sale (note 16) | (25) | – | – | (25) |
Exchange movements | (247) | (32) | (28) | (307) |
Balance at 31 December 2022 | 11,385 | 1,206 | 1,001 | 13,592 |
Depreciation charge for the year | 1,676 | 122 | 72 | 1,870 |
Disposals | (331) | (34) | (34) | (399) |
Exchange movements | 121 | 16 | 13 | 150 |
Balance at 31 December 2023 | 12,851 | 1,310 | 1,052 | 15,213 |
Net book values | ||||
31 December 2023 | 17,520 | 1,776 | 480 | 19,776 |
31 December 2022 | 16,317 | 1,630 | 399 | 18,346 |
€ million | Fleet | Property | Equipment | Total |
Analysis at 31 December 2023 | ||||
Owned | 8,828 | 907 | 384 | 10,119 |
Right of use assets (note 14) | 7,681 | 838 | 15 | 8,534 |
Progress payments | 914 | 31 | 79 | 1,024 |
Assets not in current use | 97 | – | 2 | 99 |
Property, plant and equipment | 17,520 | 1,776 | 480 | 19,776 |
Analysis at 31 December 2022 | ||||
Owned | 7,242 | 833 | 338 | 8,413 |
Right of use assets (note 14) | 7,993 | 684 | 20 | 8,697 |
Progress payments | 1,071 | 113 | 40 | 1,224 |
Assets not in current use | 11 | – | 1 | 12 |
Property, plant and equipment | 16,317 | 1,630 | 399 | 18,346 |
€ million | 2023 | 2022 |
Freehold | 482 | 469 |
Right of use assets (note 14) | 838 | 684 |
Long leasehold improvements with a contractual life in excess of 50 years | 308 | 301 |
Short leasehold improvements with a contractual life of less than 50 years | 148 | 176 |
Property | 1,776 | 1,630 |
€ million | Fleet | Property | Equipment | Total |
Cost | ||||
Balance at 1 January 2022 | 14,218 | 949 | 74 | 15,241 |
Additions | 586 | 28 | 1 | 615 |
Modifications of leases | 241 | 129 | – | 370 |
Disposals | (214) | (171) | (2) | (387) |
Reclassifications | (849) | – | (24) | (873) |
Exchange movements | (232) | (24) | – | (256) |
31 December 2022 | 13,750 | 911 | 49 | 14,710 |
Additions | 853 | 17 | – | 870 |
Modification of leases | 224 | 204 | 1 | 429 |
Disposals | (117) | (5) | (6) | (128) |
Reclassifications | (831) | – | (1) | (832) |
Exchange movements | 104 | 13 | – | 117 |
31 December 2023 | 13,983 | 1,140 | 43 | 15,166 |
Depreciation and impairment | ||||
Balance at 1 January 2022 | 5,592 | 309 | 37 | 5,938 |
Depreciation charge for the year | 991 | 93 | 8 | 1,092 |
Impairment reversal for the year | (8) | – | – | (8) |
Disposals | (191) | (170) | (1) | (362) |
Reclassifications | (528) | – | (14) | (542) |
Exchange movements | (99) | (5) | (1) | (105) |
31 December 2022 | 5,757 | 227 | 29 | 6,013 |
Depreciation charge for the year | 996 | 76 | 5 | 1,077 |
Disposals | (117) | (4) | (6) | (127) |
Reclassifications | (380) | – | – | (380) |
Exchange movements | 46 | 3 | – | 49 |
31 December 2023 | 6,302 | 302 | 28 | 6,632 |
Net book value | ||||
31 December 2023 | 7,681 | 838 | 15 | 8,534 |
31 December 2022 | 7,993 | 684 | 20 | 8,697 |
€ million | 2023 | 2022 |
1 January | 9,619 | 9,637 |
Additions | 876 | 639 |
Modifications of leases | 439 | 378 |
Repayments | (2,216) | (1,886) |
Interest expense | 508 | 464 |
Disposals | – | (28) |
Exchange movements | (259) | 415 |
31 December | 8,967 | 9,619 |
Current | 1,826 | 1,766 |
Non-current | 7,141 | 7,853 |
€ million | 2023 | 2022 |
Amounts not included in the measurement of lease liabilities | ||
Variable lease payments | 1 | 2 |
Expenses relating to short-term leases | 24 | 39 |
Amounts expensed as a result of the recognition of ROU assets and lease liabilities | ||
Interest expense on lease liabilities | 508 | 464 |
(Gains)/losses arising from sale and leaseback transactions | (7) | 1 |
Depreciation charge for the year | 1,077 | 1,092 |
Impairment reversal for the year | – | (8) |
€ million | 2023 | 2022 |
Within one year | 6 | 2 |
One to two years | 5 | 6 |
Two to five years | 3 | – |
More than five years | – | – |
Total undiscounted lease receipts | 14 | 8 |
Less finance income | (1) | (1) |
Net investment in finance leases | 13 | 7 |
Aircraft future deliveries at 31 December | 2023 | 2022 |
Airbus A320 (from 2024 to 2028) | 49 | 45 |
Airbus A321 (from 2024 to 2028) | 33 | 46 |
Airbus A321 XLR (from 2024 to 2026) | 14 | 14 |
Airbus A350-900 (from 2024 to 2025) | 2 | 7 |
Airbus A350-1000 (in 2024) | 1 | 5 |
Boeing 777-9 (from 2026 to 2028) | 18 | 18 |
Boeing 787-10 (from 2024 to 2026) | 11 | 7 |
Boeing 737-8200 (from 2025 to 2027) | 25 | 25 |
Boeing 737-10 (from 2027 to 2028) | 25 | 25 |
Total | 178 | 192 |
Customer | ||||||||
loyalty | Landing | |||||||
€ million | Goodwill | Brand | programmes | rights | Software | ETS assets | Other | Total |
Cost | ||||||||
Balance at 1 January 2022 | 596 | 451 | 253 | 1,605 | 1,674 | 62 | 87 | 4,728 |
Additions | – | – | – | 14 | 218 | 360 | 1 | 593 |
Disposals | – | – | – | (6) | (52) | (9) | – | (67) |
Exchange movements | (1) | – | – | (25) | (34) | (6) | – | (66) |
Balance at 31 December 2022 | 595 | 451 | 253 | 1,588 | 1,806 | 407 | 88 | 5,188 |
Additions | – | – | – | – | 365 | 264 | 1 | 630 |
Disposals | – | – | – | (6) | (49) | (96) | – | (151) |
Reclassifications | – | – | – | – | 23 | – | (15) | 8 |
Exchange movements | 1 | – | – | 11 | 18 | 2 | – | 32 |
31 December 2023 | 596 | 451 | 253 | 1,593 | 2,163 | 577 | 74 | 5,707 |
Amortisation and impairment | ||||||||
Balance at 1 January 2022 | 249 | – | – | 142 | 1,032 | – | 66 | 1,489 |
Amortisation charge for the year | – | – | – | 6 | 210 | – | 2 | 218 |
Disposals | – | – | – | – | (50) | – | – | (50) |
Exchange movements | – | – | – | (2) | (23) | – | – | (25) |
Balance at 31 December 2022 | 249 | – | – | 146 | 1,169 | – | 68 | 1,632 |
Amortisation charge for the year | – | – | – | 6 | 185 | – | 2 | 193 |
Disposals | – | – | – | – | (39) | – | – | (39) |
Exchange movements | – | – | – | 1 | 11 | – | – | 12 |
31 December 2023 | 249 | – | – | 153 | 1,326 | – | 70 | 1,798 |
Net book values | ||||||||
31 December 2023 | 347 | 451 | 253 | 1,440 | 837 | 577 | 4 | 3,909 |
31 December 2022 | 346 | 451 | 253 | 1,442 | 637 | 407 | 20 | 3,556 |
Customer | |||||
loyalty | Landing | ||||
€ million | Goodwill | Brand | programmes | rights | Total |
2023 | |||||
Iberia | |||||
1 January and 31 December 2023 | – | 306 | – | 423 | 729 |
British Airways | |||||
1 January 2023 | 46 | – | – | 794 | 840 |
Disposals | – | – | – | (6) | (6) |
Exchange movements | 1 | – | – | 10 | 11 |
31 December 2023 | 47 | – | – | 798 | 845 |
Vueling | |||||
1 January and 31 December 2023 | 28 | 35 | – | 94 | 157 |
Aer Lingus | |||||
1 January and 31 December 2023 | 272 | 110 | – | 62 | 444 |
IAG Loyalty | |||||
1 January and 31 December 2023 | – | – | 253 | – | 253 |
31 December 2023 | 347 | 451 | 253 | 1,377 | 2,428 |
Customer | |||||
loyalty | Landing | ||||
€ million | Goodwill | Brand | programmes | rights | Total |
2022 | |||||
Iberia | |||||
1 January and 31 December 2022 | – | 306 | – | 423 | 729 |
British Airways | |||||
1 January 2022 | 47 | – | – | 809 | 856 |
Additions | – | – | – | 14 | 14 |
Disposals | – | – | – | (6) | (6) |
Exchange movements | (1) | – | – | (23) | (24) |
31 December 2022 | 46 | – | – | 794 | 840 |
Vueling | |||||
1 January and 31 December 2022 | 28 | 35 | – | 94 | 157 |
Aer Lingus | |||||
1 January and 31 December 2022 | 272 | 110 | – | 62 | 444 |
IAG Loyalty | |||||
1 January and 31 December 2022 | – | – | 253 | – | 253 |
31 December 2022 | 346 | 451 | 253 | 1,373 | 2,423 |
2023 | |||||
British | |||||
Per cent | Airways | Iberia | Vueling | Aer Lingus | IAG Loyalty |
Operating margin | 7-14 | 7-14 | 4-12 | 6-14 | 23 |
Average ASK growth per annum | 3-9 | 4-10 | 1-6 | 2-16 | n/a |
Long-term growth rate | 1.7 | 1.5 | 0.9 | 1.3 | 1.5 |
Pre-tax discount rate | 11.2 | 12.2 | 14.3 | 10.9 | 14.8 |
2022 | |||||
British | |||||
Per cent | Airways | Iberia | Vueling | Aer Lingus | IAG Loyalty |
Operating margin | 5-13 | 5-10 | 0-10 | 4-12 | 23-25 |
ASKs as a proportion of 2019 | 90-105 | 92-107 | 113-123 | 102-127 | n/a |
Long-term growth rate | 1.7 | 1.5 | 1.4 | 1.6 | 1.7 |
Pre-tax discount rate | 10.4 | 11.2 | 12.8 | 10.1 | 13.4 |
Within 12 | 3 years and | |||
Jet fuel price ($ per MT) | months | 1-2 years | 2-3 years | thereafter |
2023 | 895 | 829 | 800 | 800 |
2022 | 867 | 809 | 780 | 780 |
€ million | 2023 | 2022 |
Total assets | 166 | 148 |
Total liabilities | (119) | (104) |
Revenue | 107 | 89 |
Profit for the year | 6 | 5 |
€ million | 2023 | 2022 |
At beginning of year | 43 | 40 |
Share of retained profits | 6 | 5 |
Dividends received | (2) | (2) |
47 | 43 |
€ million | 2023 | 2022 |
Unlisted securities | 188 | 55 |
188 | 55 |
€ million | 2023 | 2022 |
Amounts falling due within one year | ||
Trade receivables | 1,673 | 1,444 |
Provision for expected credit loss | (114) | (114) |
Net trade receivables | 1,559 | 1,330 |
Prepayments | 750 | 639 |
Accrued income | 495 | 231 |
Other non-trade receivables | 329 | 356 |
Other current receivables | 1,574 | 1,226 |
Amounts falling due after one year | ||
Prepayments | 401 | 337 |
Accrued income | 9 | – |
Other non-trade receivables | 22 | 25 |
Other receivables due after one year | 432 | 362 |
€ million | 2023 | 2022 |
At beginning of year | 114 | 115 |
Provided during the year | 4 | 10 |
Released during the year | (3) | (1) |
Receivables written off during the year | (1) | (9) |
Exchange movements | – | (1) |
114 | 114 |
€ million | Current | <30 days | 30-180 days | 180-365 days | > 365 days |
Trade receivables | 959 | 296 | 241 | 53 | 124 |
Expected credit loss rate | 0.1% | 0.1% | 1.7% | 7.5% | 85.2% |
Provision for expected credit loss | – | – | 4 | 4 | 106 |
€ million | Current | <30 days | 30-180 days | 180-365 days | > 365 days |
Trade receivables | 719 | 509 | 91 | 25 | 100 |
Expected credit loss rate | 0.3% | 0.1% | 1.1% | 44.0% | 100.0% |
Provision for expected credit loss | 2 | – | 1 | 11 | 100 |
€ million | 2023 | 2022 |
Engineering expendables | 417 | 296 |
Catering consumables | 43 | 36 |
Other inventories | 34 | 21 |
494 | 353 |
€ million | 2023 | 2022 |
Cash at bank and in hand | 1,531 | 3,286 |
Short-term deposits maturing within three months | 3,910 | 5,910 |
Cash and cash equivalents | 5,441 | 9,196 |
Current interest-bearing deposits maturing after three months | 1,396 | 403 |
Cash, cash equivalents and other interest-bearing deposits | 6,837 | 9,599 |
Balance at 31 | ||||||
Balance at 1 | Exchange | New leases and | December | |||
€ million | January 2023 | Cash flows | movements | modifications | Other items | 2023 |
Bank, other loans, convertible bond and asset | ||||||
financed liabilities | 10,365 | (3,267) | (102) | – | 119 | 7,115 |
Lease liabilities | 9,619 | (1,731) | (259) | 1,315 | 23 | 8,967 |
Cash and cash equivalents | (9,196) | 3,753 | 2 | – | – | (5,441) |
Current interest-bearing deposits | (403) | (985) | (8) | – | – | (1,396) |
10,385 | (2,230) | (367) | 1,315 | 142 | 9,245 | |
Balance at 31 | ||||||
Balance at 1 | Exchange | New leases and | December | |||
€ million | January 2022 | Cash flows | movements | modifications | Other items | 2022 |
Bank, other loans, convertible bond and asset | ||||||
financed liabilities | 9,973 | 386 | 103 | – | (97) | 10,365 |
Lease liabilities | 9,637 | (1,455) | 415 | 1,017 | 5 | 9,619 |
Cash and cash equivalents | (7,892) | (1,316) | 12 | – | – | (9,196) |
Current interest-bearing deposits | (51) | (351) | (1) | – | – | (403) |
11,667 | (2,736) | 529 | 1,017 | (92) | 10,385 |
€ million | 2023 | 2022 |
Trade creditors | 3,177 | 2,969 |
Other creditors | 1,244 | 1,244 |
Other taxation and social security | 262 | 228 |
Accruals | 683 | 665 |
Deferred income relating to non-flight activity | 224 | 103 |
5,590 | 5,209 |
Days | 2023 | 2022 |
Average payment days for payment to suppliers | 25 | 34 |
Ratio of transactions paid | 25 | 33 |
Ratio of transactions outstanding for payment | 17 | 53 |
€ million | 2023 | 2022 |
Total payments made | 10,966 | 6,676 |
Total payments outstanding | 158 | 264 |
2023 | 2022 | |
Total payments made (€ million) | 10,002 | 5,111 |
Percentage share of total payments to suppliers | 91% | 77% |
Number of invoices paid (thousand) | 213 | 110 |
Percentage share of total number of invoices paid | 76% | 48% |
Customer | Sales in | ||
loyalty | advance of | ||
€ million | programmes | carriage | Total |
Balance at 1 January 2023 | 2,630 | 5,014 | 7,644 |
Cash received from customers | – | 21,107 | 21,107 |
Revenue recognised in the Income statement | (1,052) | (21,015) | (22,067) |
Financing charge recognised in the Income statement | 15 | – | 15 |
Loyalty points issued to customers | 1,085 | 161 | 1,246 |
Exchange movements | 34 | 44 | 78 |
Balance at 31 December 2023 | 2,712 | 5,311 | 8,023 |
Analysis: | |||
Current | 2,455 | 5,311 | 7,766 |
Non-current | 257 | – | 257 |
2,712 | 5,311 | 8,023 |
Customer | Sales in | ||
loyalty | advance of | ||
€ million | programmes | carriage | Total |
Balance at 1 January 2022 | 2,820 | 3,732 | 6,552 |
Cash received from customers | – | 21,000 | 21,000 |
Revenue recognised in the Income statement | (801) | (19,708) | (20,509) |
Financing charge recognised in the Income statement | 21 | – | 21 |
Loyalty points issued to customers | 662 | 82 | 744 |
Exchange movements | (72) | (92) | (164) |
Balance at 31 December 2022 | 2,630 | 5,014 | 7,644 |
Analysis: | |||
Current | 2,304 | 5,014 | 7,318 |
Non-current | 326 | – | 326 |
2,630 | 5,014 | 7,644 |
€ million | 2023 | 2022 |
Non-current trade creditors | 164 | 147 |
Accruals and deferred income | 55 | 53 |
219 | 200 |
2023 | 2022 | |||||
€ million | Current | Non-current | Total | Current | Non-current | Total |
Bank and other loans | 113 | 1,840 | 1,953 | 813 | 5,128 | 5,941 |
Convertible bond | 9 | 726 | 735 | 9 | 596 | 605 |
Asset financed liabilities | 303 | 4,124 | 4,427 | 255 | 3,564 | 3,819 |
Lease liabilities | 1,826 | 7,141 | 8,967 | 1,766 | 7,853 | 9,619 |
Interest-bearing long-term borrowings | 2,251 | 13,831 | 16,082 | 2,843 | 17,141 | 19,984 |
€ million | 2023 | 2022 |
€825 million fixed rate 1.125 per cent convertible bond 2028 | 735 | 605 |
€700 million fixed rate 3.75 per cent unsecured bond 2029 | 717 | 717 |
€500 million fixed rate 2.75 per cent unsecured bond 2025 | 510 | 509 |
€500 million fixed rate 1.50 per cent bond 2027 | 500 | 499 |
Floating rate euro mortgage loans secured on aircraft | 114 | 143 |
Fixed rate secured bonds | 56 | 56 |
Fixed rate unsecured US dollar mortgage loan 6 | 46 | 71 |
Fixed rate unsecured euro loans with the Spanish State (Department of Industry) 7 | 10 | 10 |
Floating rate pound sterling term loan guaranteed by the UK Export Finance (UKEF) | – | 2,315 |
Floating rate Instituto de Crédito Oficial (ICO) guaranteed loans | – | 1,070 |
€500 million fixed rate 0.50 per cent bond 2023 | – | 501 |
Ireland Strategic Investment Fund (ISIF) facility | – | 50 |
Total bank, other loans and convertible bond | 2,688 | 6,546 |
Less: current instalments due on bank, other loans and convertible bond | (122) | (822) |
Total non-current bank, other loans and convertible bond | 2,566 | 5,724 |
Million | 2023 | 2022 |
Loans | ||
Bank: | ||
US dollar | $50 | $75 |
Euro | €124 | €1,273 |
Pound sterling | – | £2,026 |
€170 | €3,659 | |
Fixed rate bonds: | ||
Euro | €1,783 | €2,282 |
€1,783 | €2,282 | |
Convertible bond | ||
Euro | €735 | €605 |
€735 | €605 | |
Asset financed liabilities | ||
US dollar | $3,849 | $3,285 |
Euro | €746 | €542 |
Japanese yen | ¥28,432 | ¥25,748 |
€4,427 | €3,819 | |
Lease liabilities | ||
US dollar | $7,399 | $7,621 |
Euro | €1,008 | €1,239 |
Japanese yen | ¥68,998 | ¥71,994 |
Pound sterling | £690 | £620 |
€8,967 | €9,619 | |
Total interest-bearing borrowings | €16,082 | €19,984 |
Employee | |||||||
leaving | |||||||
indemnities | Legal claims | ||||||
and other | and | ||||||
Restoration | employee | contractual | |||||
and handback | Restructuring | related | disputes | ETS | Other | ||
€ million | provisions | provisions | provisions | provisions | provisions | provisions | Total |
Net book value 1 January 2023 | 2,400 | 194 | 673 | 89 | 132 | 60 | 3,548 |
Provisions recorded during the year | 520 | 1 | 53 | 15 | 238 | 32 | 859 |
Reclassifications | 4 | – | – | (1) | – | (6) | (3) |
Utilised during the year | (338) | (82) | (35) | (9) | – | (32) | (496) |
Extinguished during the year | – | – | – | – | (98) | – | (98) |
Release of unused amounts | (68) | (21) | (2) | (15) | (26) | (1) | (133) |
Unwinding of discount | 78 | 2 | 23 | – | – | – | 103 |
Remeasurements | 4 | – | 24 | – | – | – | 28 |
Exchange differences | (71) | – | (1) | 3 | 1 | – | (68) |
Net book value 31 December 2023 | 2,529 | 94 | 735 | 82 | 247 | 53 | 3,740 |
Analysis: | |||||||
Current | 467 | 59 | 73 | 56 | 247 | 7 | 909 |
Non-current | 2,062 | 35 | 662 | 26 | – | 46 | 2,831 |
2,529 | 94 | 735 | 82 | 247 | 53 | 3,740 |
2023 | 2022 | ||||
Increase/(decrease) | Effect on profit | Effect on | Increase/(decrease) | Effect on profit | Effect on |
in fuel price | before tax | equity | in fuel price | before tax | equity |
per cent | € million | € million | per cent | € million | € million |
40 | – | 1,497 | 45 | – | 1,402 |
(40) | – | (1,526) | (45) | – | (1,200) |
Strengthening/ | |||||||||
Strengthening/ | Effect on | (weakening) in | Effect on | Strengthening/ | Effect on | ||||
(weakening) in US | profit | Effect on | pound | profit | Effect on | (weakening) in | profit | Effect on | |
dollar rate | before tax | equity | sterling rate | before tax | equity | Japanese yen rate | before tax | equity | |
per cent | € million | € million | per cent | € million | € million | per cent | € million | € million | |
2023 | 20 | 343 | 1,005 | 20 | 6 | 262 | 20 | (50) | (64) |
(20) | (346) | (1,159) | (20) | (8) | (262) | (20) | 50 | 64 | |
2022 | 20 | 904 | 1,299 | 20 | (20) | 241 | 20 | (58) | (70) |
(20) | (922) | (1,161) | (20) | 18 | (241) | (20) | 58 | 70 |
Strengthening/ | Strengthening/ | Strengthening/ | |||||||
(weakening) in | Effect on | (weakening) in | Effect on | (weakening) in | Effect on | ||||
US interest | profit | Effect on | euro interest | profit | Effect on | sterling interest | profit | Effect on | |
rate | before tax | equity | rate | before tax | equity | rate | before tax | equity | |
Basis points | € million | € million | Basis points | € million | € million | Basis points | € million | € million | |
2023 | 100 | – | – | 100 | (12) | 16 | 100 | – | – |
(100) | – | – | (100) | 12 | (16) | (100) | – | – | |
2022 | 150 | – | 6 | 150 | 5 | 17 | 150 | (35) | – |
(150) | – | (7) | (150) | (4) | (17) | (150) | 35 | – |
controlled financial | Mark-to-market of treasury | ||
instruments allocated by | |||
geography | |||
Region | 2023 | 2022 | |
United Kingdom | 55 % | 51 % | |
Spain | – % | 1 % | |
Ireland | 16 % | 20 % | |
Rest of eurozone | 24 % | 27 % | |
Rest of world | 5 % | 1 % |
2023 | ||
Million | Currency | € equivalent |
General facilities | ||
Euro facilities expiring between March and May 2024 | €87 | 87 |
Euro facility expiring March 2025 | €350 | 350 |
US dollar facilities expiring March 2025 and March 2026 | $1,755 | 1,605 |
Pound sterling facilities expiring November 2026 and September 2028 | £2,000 | 2,317 |
4,359 | ||
Committed aircraft facilities | ||
US dollar facilities expiring between June and July 2024 | $410 | 375 |
375 | ||
2022 | ||
Million | Currency | € equivalent |
General facilities | ||
Euro facilities expiring between January and March 2023 | €87 | 87 |
US dollar facility expiring November 2023 | $50 | 47 |
Euro facility expiring March 2025 | €300 | 300 |
US dollar facility expiring March 2025 | $1,755 | 1,654 |
Pound sterling facility expiring November 2026 | £1,000 | 1,143 |
3,231 | ||
Committed aircraft facilities | ||
US dollar facilities expiring between February and September 2023 | $386 | 364 |
US dollar facility expiring April 2023 | $273 | 257 |
US dollar facilities expiring between October 2023 and March 2024 | $525 | 495 |
1,116 |
Within 6 | 6-12 | 1-2 | 2-5 | More than 5 | ||
€ million | months | months | years | years | years | Total 2023 |
Interest-bearing loans and borrowings: | ||||||
Asset financing liabilities | (241) | (230) | (448) | (1,317) | (3,195) | (5,431) |
Lease liabilities | (1,303) | (864) | (1,546) | (3,798) | (5,017) | (12,528) |
Fixed rate borrowings | (59) | (16) | (588) | (1,513) | (726) | (2,902) |
Floating rate borrowings | (15) | (38) | (27) | (42) | – | (122) |
Trade and other payables | (5,590) | – | (219) | – | – | (5,809) |
Derivative financial instruments (assets): | ||||||
Interest rate derivatives | 12 | 9 | 8 | 4 | 1 | 34 |
Foreign exchange contracts | 35 | 17 | 6 | – | – | 58 |
Fuel derivatives | 5 | 4 | 26 | – | – | 35 |
Derivative financial instruments (liabilities): | ||||||
Interest rate derivatives | (1) | (1) | (1) | (1) | – | (4) |
Foreign exchange contracts | (206) | (179) | (38) | – | – | (423) |
Fuel derivatives | (42) | (43) | (35) | (39) | – | (159) |
31 December 2023 | (7,405) | (1,341) | (2,862) | (6,706) | (8,937) | (27,251) |
Within 6 | 6-12 | 1-2 | 2-5 | More than 5 | ||
€ million | months | months | years | years | years | Total 2022 |
Interest-bearing loans and borrowings: | ||||||
Asset financing liabilities | (196) | (190) | (374) | (1,081) | (2,823) | (4,664) |
Lease liabilities | (955) | (1,050) | (2,120) | (3,374) | (5,295) | (12,794) |
Fixed rate borrowings | (64) | (523) | (78) | (1,242) | (757) | (2,664) |
Floating rate borrowings | (227) | (146) | (455) | (3,191) | – | (4,019) |
Trade and other payables | (5,209) | – | (200) | – | – | (5,409) |
Derivative financial instruments (assets): | ||||||
Interest rate derivatives | 42 | 9 | 12 | 9 | – | 72 |
Foreign exchange contracts | 245 | 195 | 46 | – | – | 486 |
Fuel derivatives | 122 | 62 | 13 | – | – | 197 |
Derivative financial instruments (liabilities): | ||||||
Interest rate derivatives | (4) | (1) | (1) | (3) | – | (9) |
Foreign exchange contracts | (185) | (121) | (68) | – | – | (374) |
Fuel derivatives | (42) | (59) | (10) | – | – | (111) |
31 December 2022 | (6,473) | (1,824) | (3,235) | (8,882) | (8,875) | (29,289) |
Net amounts | |||||
Gross | of financial | Related | |||
Gross value of | amounts set | instruments in | amounts not | ||
financial | off in the | the Balance | offset in the | ||
€ million | instruments | Balance sheet | sheet | Balance sheet | Net amount |
Financial assets | |||||
Derivative financial assets | 151 | (28) | 123 | (2) | 121 |
Financial liabilities | |||||
Derivative financial liabilities | 595 | (28) | 567 | (2) | 565 |
Net amounts | |||||
Gross | of financial | Related | |||
Gross value of | amounts set | instruments in | amounts not | ||
financial | off in the | the Balance | offset in the | ||
€ million | instruments | Balance sheet | sheet | Balance sheet | Net amount |
Financial assets | |||||
Derivative financial assets | 760 | (34) | 726 | (5) | 721 |
Financial liabilities | |||||
Derivative financial liabilities | 505 | (34) | 471 | (5) | 466 |
31 December 2023 | |||||
Financial assets | |||||
Fair value | |||||
through Other | Total | ||||
comprehensive | Fair value through | carrying amount by | |||
€ million | Amortised cost | income | Income statement | Non-financial assets | balance sheet item |
Non-current assets | |||||
Other equity investments | – | 188 | – | – | 188 |
Derivative financial instruments | – | – | 42 | – | 42 |
Other non-current assets | 211 | – | – | 221 | 432 |
Current assets | |||||
Trade receivables | 1,559 | – | – | – | 1,559 |
Other current assets | 545 | – | – | 1,029 | 1,574 |
Derivative financial instruments | – | – | 81 | – | 81 |
Other current interest-bearing deposits | 1,396 | – | – | – | 1,396 |
Cash and cash equivalents | 5,441 | – | – | – | 5,441 |
Financial liabilities | |||||
Total | |||||
Fair value through | Non-financial | carrying amount by | |||
€ million | Amortised cost | Income statement | liabilities | balance sheet item | |
Non-current liabilities | |||||
Lease liabilities | 7,141 | – | – | 7,141 | |
Interest-bearing long-term borrowings | 5,964 | 726 | – | 6,690 | |
Derivative financial instruments | – | 106 | – | 106 | |
Other long-term liabilities | 151 | – | 68 | 219 | |
Current liabilities | |||||
Lease liabilities | 1,826 | – | – | 1,826 | |
Current portion of long-term borrowings | 416 | 9 | – | 425 | |
Trade and other payables | 5,198 | – | 392 | 5,590 | |
Derivative financial instruments | – | 461 | – | 461 | |
31 December 2022 | Financial assets | ||||
Fair value | |||||
through Other | Total | ||||
comprehensive | Fair value through | carrying amount by | |||
€ million | Amortised cost | income | Income statement | Non-financial assets | balance sheet item |
Non-current assets | |||||
Other equity investments | – | 55 | – | – | 55 |
Derivative financial instruments | – | – | 81 | – | 81 |
Other non-current assets | 180 | – | – | 182 | 362 |
Current assets | |||||
Trade receivables | 1,330 | – | – | – | 1,330 |
Other current assets | 308 | – | – | 918 | 1,226 |
Derivative financial instruments | – | – | 645 | – | 645 |
Other current interest-bearing deposits | 403 | – | – | – | 403 |
Cash and cash equivalents | 9,196 | – | – | – | 9,196 |
Financial liabilities | ||||
Total | ||||
Fair value through | Non-financial | carrying amount by | ||
€ million | Amortised cost | Income statement | liabilities | balance sheet item |
Non-current liabilities | ||||
Lease liabilities | 7,853 | – | – | 7,853 |
Interest-bearing long-term borrowings | 8,692 | 596 | – | 9,288 |
Derivative financial instruments | – | 84 | – | 84 |
Other long-term liabilities | 131 | – | 69 | 200 |
Current liabilities | ||||
Lease liabilities | 1,766 | – | – | 1,766 |
Current portion of long-term borrowings | 1,068 | 9 | – | 1,077 |
Trade and other payables | 4,898 | – | 311 | 5,209 |
Derivative financial instruments | – | 387 | – | 387 |
Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is |
performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the |
Fair value | Carrying value | ||||
€ million | Level 1 | Level 2 | Level 3 | Total | Total |
Financial assets | |||||
Other equity investments | 1 | – | 187 | 188 | 188 |
Other non-current financial assets | – | 12 | – | 12 | 25 |
Derivative financial assets: | |||||
Interest rate swaps | – | 32 | – | 32 | 32 |
Foreign exchange contracts | – | 58 | – | 58 | 58 |
Fuel derivatives | – | 33 | – | 33 | 33 |
Financial liabilities | |||||
Interest-bearing loans and borrowings: | |||||
Asset financed liabilities | – | 3,900 | – | 3,900 | 4,427 |
Fixed rate borrowings | 2,429 | 53 | – | 2,482 | 2,574 |
Floating rate borrowings | – | 111 | – | 111 | 114 |
Derivative financial liabilities: | |||||
Interest rate derivatives | – | 4 | – | 4 | 4 |
Foreign exchange contracts | – | 415 | – | 415 | 415 |
Fuel derivatives | – | 148 | – | 148 | 148 |
Fair value | Carrying value | ||||
€ million | Level 1 | Level 2 | Level 3 | Total | Total |
Financial assets | |||||
Other equity investments | – | – | 55 | 55 | 55 |
Other non-current financial assets | – | 20 | – | 20 | 31 |
Derivative financial assets: | |||||
Interest rate swaps | – | 66 | – | 66 | 66 |
Foreign exchange contracts | – | 467 | – | 467 | 467 |
Fuel derivatives | – | 193 | – | 193 | 193 |
Financial liabilities | |||||
Interest-bearing loans and borrowings: | |||||
Asset financed liabilities | – | 2,925 | – | 2,925 | 3,819 |
Fixed rate borrowings | 2,538 | 72 | – | 2,610 | 2,967 |
Floating rate borrowings | – | 3,419 | – | 3,419 | 3,579 |
Derivative financial liabilities: | |||||
Interest rate derivatives | – | 6 | – | 6 | 6 |
Foreign exchange contracts | – | 359 | – | 359 | 359 |
Fuel derivatives | – | 106 | – | 106 | 106 |
€ million | 2023 | 2022 |
Opening balance for the year | 55 | 31 |
Additions - other | 5 | 2 |
Addition of Air Europa Holdings | – | 22 |
Transfers to Level 1 financial assets | (1) | – |
Net gains recognised in Other comprehensive income | 128 | 2 |
Net losses recognised in the Income statement | – | (2) |
Closing balance for the year | 187 | 55 |
€ million | 2023 | 2022 |
Loan repayments to hedge future revenue | 22 | 87 |
Foreign exchange contracts to hedge future revenue and expenditure | 94 | (178) |
Crude, gas oil and jet kerosene derivative contracts | 67 | (127) |
Derivatives used to hedge interest rates | (1) | (46) |
Instruments for which hedge accounting no longer applies | 123 | 213 |
305 | (51) | |
Related deferred tax (credit)/charge | (75) | 20 |
Total amount included within equity | 230 | (31) |
Total 31 | |||||||
Notional principal amounts | Average | Within | December | ||||
(€ million) | hedge rate | Hedge range | 1 year | 1-2 years | 2-5 years | 5+ years | 2023 |
Foreign exchange contracts to hedge | |||||||
future revenue and expenditure from US | |||||||
dollars to pound sterling | 1.21 | 1.05 to 1.35 | 3,147 | 1,239 | – | – | 4,386 |
Foreign exchange contracts to hedge | |||||||
future revenue and expenditure from US | |||||||
dollars to euros | 1.00 | 0.86 to 1.24 | 2,458 | 939 | 305 | – | 3,702 |
Foreign exchange contracts to hedge | |||||||
future revenue and expenditure from euros | |||||||
to pound sterling | 1.21 | 1.07 to 1.42 | 479 | 375 | 357 | 124 | 1,335 |
Fuel commodity price contracts to hedge | |||||||
future US dollar fuel expenditure | 722 | 489 to 1,200 | 5,425 | 1,948 | 980 | – | 8,353 |
Interest rate contracts to hedge future | |||||||
interest expenditure | 1.83 | (0.06) to 3.90 | 2,127 | 912 | 493 | 2 |
Total 31 | |||||||
Notional principal amounts | Average | Within | December | ||||
(€ million) | hedge rate | Hedge range | 1 year | 1-2 years | 2-5 years | 5+ years | 2022 |
Foreign exchange contracts to hedge future | |||||||
revenue and expenditure from US dollars to pound sterling | 1.23 | 1.05 to 1.45 | 3,582 | 1,355 | – | – | 4,937 |
Foreign exchange contracts to hedge future | |||||||
revenue and expenditure from US dollars to euros | 1.08 | 0.91 to 1.26 | 2,578 | 1,318 | – | – | 3,896 |
Foreign exchange contracts to hedge future | |||||||
revenue and expenditure from euros to pound sterling | 1.23 | 1.00 to 1.42 | 371 | 406 | 458 | 14 | 1,249 |
Fuel commodity price contracts to hedge | |||||||
future US dollar fuel expenditure | 718 | 416 to 2,200 | 2,935 | 331 | – | – | 3,266 |
Interest rate contracts to hedge future | |||||||
interest expenditure | 1.04 | (0.03) to 3.13 | 2,360 | 504 | 238 | 9 |
Amounts recognised in the Income statement | ||||||
Fair value | ||||||
movements | ||||||
recognised in | Amounts | |||||
Discontinuance | Reclassified to | Total | Other | transferred to | ||
For the year to 31 December 2023 | of hedge | the Income | recognised | comprehensive | the Balance | |
(€ million) | Ineffectiveness | accounting | statement | movements | income | sheet |
Foreign exchange contracts to hedge future | ||||||
revenue and expenditure | (1) | – | 31 | 30 | 234 | 3 |
Crude, gas oil and jet kerosene derivative | ||||||
contracts | 9 | – | 99 | 108 | 71 | 13 |
Derivatives used to hedge interest rates | – | – | 48 | 48 | (3) | – |
Loan repayments to hedge future revenue | – | – | – | – | (47) | (18) |
Instruments for which hedge accounting no longer applies | – | – | – | – | – | (92) |
8 | – | 178 | 186 | 255 | (94) | |
Related deferred tax | (44) | (60) | 10 | |||
Total movements recorded in the cash flow | ||||||
hedge reserve | 142 | 195 | (84) |
Amounts recognised in the Income statement | ||||||
Fair value | ||||||
movements | ||||||
recognised in | Amounts | |||||
Discontinuance | Reclassified to | Total | Other | transferred to | ||
For the year to 31 December 2022 | of hedge | the Income | recognised | comprehensive | the Balance | |
(€ million) | Ineffectiveness | accounting | statement | movements | income | sheet |
Foreign exchange contracts to hedge future | ||||||
revenue and expenditure | – | 29 | 228 | 257 | (525) | 43 |
Crude, gas oil and jet kerosene derivative | ||||||
contracts | 19 | – | 1,299 | 1,318 | (1,249) | 66 |
Derivatives used to hedge interest rates | – | – | (12) | (12) | (95) | – |
Loan repayments to hedge future revenue | – | – | – | – | (1) | (7) |
Instruments for which hedge accounting no longer applies | – | – | – | – | – | (27) |
19 | 29 | 1,515 | 1,563 | (1,870) | 75 | |
Related deferred tax | (330) | 398 | (1) | |||
Total movements recorded in the cash flow | ||||||
hedge reserve | 1,233 | (1,472) | 74 |
€ million | 2023 | 2022 |
Losses associated with the discontinuance of hedge accounting recognised in the Income statement | – | (29) |
Fair value movements subsequently recorded in the Income statement | – | – |
Total effect of discontinuance of hedge accounting in the Income statement | – | (29) |
€ million | 2023 | 2022 |
Carrying value of lease liabilities to which fair value hedging has been applied (hedged items) | (65) | – |
Carrying amount of the interest rate derivatives (hedging instruments) | (4) | – |
Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying | (2) | – |
amount of the hedged item | ||
Change in value used for calculating hedge ineffectiveness | 3 | – |
Number of | Ordinary | Share | |
shares | share capital | premium | |
Allotted, called up and fully paid | ‘000s | € million | € million |
31 December 2022: Ordinary shares of €0.10 each | 4,971,476 | 497 | 7,770 |
31 December 2023: Ordinary shares of €0.10 each | 4,971,476 | 497 | 7,770 |
Outstanding | Outstanding at | Exercisable 31 | ||||
at 1 January | Granted | Lapsed | Vested | 31 December | December | |
Number of awards ’000s | 2023 | number | number | number | 2023 | 2023 |
Performance Share Plan | 16,339 | – | 6,263 | 944 | 9,132 | 4,166 |
Restricted Share Plan | 40,334 | 24,462 | 5,152 | 431 | 59,213 | – |
Full Potential Incentive Plan | 27,705 | 5,681 | 3,786 | – | 29,600 | – |
Incentive Award Deferral Plan | 2,411 | 1,007 | 173 | 2,387 | 858 | – |
86,789 | 31,150 | 15,374 | 3,762 | 98,803 | 4,166 |
Other reserves | |||||||
Unrealised | Cost of | Non- | |||||
gains and | hedging | Currency | Merger | Capital | Total other | controlling | |
€ million | losses 1 | reserve | translation | reserve | reserves | reserves | interest |
1 January 2023 | 67 | (66) | (118) | (2,467) | 867 | (1,717) | 6 |
Other comprehensive (loss)/income for the year | |||||||
Cash flow hedges reclassified and reported in net | |||||||
profit: | |||||||
Fuel and oil costs | (81) | – | – | – | – | (81) | – |
Currency differences | (20) | – | – | – | – | (20) | – |
Finance costs | (35) | – | – | – | – | (35) | – |
Ineffectiveness recognised in other non- operating costs | (6) | – | – | – | – | (6) | – |
Net change in fair value of cash flow hedges | (195) | – | – | – | – | (195) | – |
Net change in fair value of other equity | |||||||
investments | 127 | – | – | – | – | 127 | – |
Net change in fair value of cost of hedging | – | (120) | – | – | – | (120) | – |
Cost of hedging reclassified and reported in net | |||||||
profit | – | 82 | – | – | – | 82 | – |
Fair value movements on liabilities attributable to credit risk changes | (119) | – | – | – | – | (119) | – |
Currency translation differences | – | – | 18 | – | – | 18 | – |
Hedges transferred and reported in property, plant and equipment | 9 | (15) | – | – | – | (6) | – |
Hedges transferred and reported in sales in advance of carriage | 84 | 1 | – | – | – | 85 | – |
Hedges transferred and reported in inventory | (9) | – | – | – | – | (9) | – |
31 December 2023 | (178) | (118) | (100) | (2,467) | 867 | (1,996) | 6 |
Other reserves | ||||||||
Equity | ||||||||
Unrealised | Cost of | portion of | Redeemed | Non- | ||||
gains and | hedging | Currency | convertible | Merger | capital | Total other | controlling | |
€ million | losses | reserve | translation | bond | reserve | reserve | reserves | interest |
1 January 2022 | (94) | 24 | (65) | 62 | (2,467) | 867 | (1,673) | 6 |
Other comprehensive income/(loss) | ||||||||
for the year | ||||||||
Cash flow hedges reclassified and reported in net profit: | ||||||||
Fuel and oil costs | (1,115) | – | – | – | – | – | (1,115) | – |
Currency differences | (90) | – | – | – | – | – | (90) | – |
Finance costs | 10 | – | – | – | – | – | 10 | – |
Discontinuance of hedge | ||||||||
accounting | (22) | – | – | – | – | – | (22) | – |
Ineffectiveness recognised in other non-operating costs | (16) | – | – | – | – | – | (16) | – |
Net change in fair value of cash flow | ||||||||
hedges | 1,472 | – | – | – | – | – | 1,472 | – |
Net change in fair value of other equity investments | 2 | – | – | – | – | – | 2 | – |
Net change in fair value of cost of hedging | – | (115) | – | – | – | – | (115) | – |
Cost of hedging reclassified and reported in net profit | – | 38 | – | – | – | – | 38 | – |
Fair value movements on liabilities | ||||||||
attributable to credit risk changes | (6) | – | – | – | – | – | (6) | – |
Currency translation differences | – | – | (53) | – | – | – | (53) | – |
Hedges transferred and reported in property, plant and equipment | (51) | (14) | – | – | – | – | (65) | – |
Hedges transferred and reported in sales in advance of carriage | 35 | 1 | – | – | – | – | 36 | – |
Hedges transferred and reported in inventory | (58) | – | – | – | – | – | (58) | – |
Redemption of convertible bond | – | – | – | (62) | – | – | (62) | – |
31 December 2022 | 67 | (66) | (118) | – | (2,467) | 867 | (1,717) | 6 |
Other | ||
€ million | NAPS | schemes |
Within 12 months | – | 36 |
1-2 years | – | 37 |
2-5 years | – | 38 |
Greater than 5 years | – | – |
Total expected deficit payments | – | 111 |
2023 | ||||
€ million | APS | NAPS | Other | Total |
Scheme assets at fair value | 6,070 | 16,724 | 393 | 23,187 |
Present value of scheme liabilities | (6,048) | (14,644) | (547) | (21,239) |
Net pension asset/(liability) | 22 | 2,080 | (154) | 1,948 |
Effect of the asset ceiling | (7) | (728) | – | (735) |
Other employee benefit obligations | – | – | (8) | (8) |
31 December 2023 | 15 | 1,352 | (162) | 1,205 |
Represented by: | ||||
Employee benefit asset | 1,380 | |||
Employee benefit obligation | (175) | |||
Net employee benefit asset | 1,205 |
2022 | ||||
€ million | APS | NAPS | Other | Total |
Scheme assets at fair value | 6,283 | 17,029 | 356 | 23,668 |
Present value of scheme liabilities | (6,052) | (13,692) | (548) | (20,292) |
Net pension asset/(liability) | 231 | 3,337 | (192) | 3,376 |
Effect of the asset ceiling | (80) | (1,168) | – | (1,248) |
Other employee benefit obligations | – | – | (11) | (11) |
31 December 2022 | 151 | 2,169 | (203) | 2,117 |
Represented by: | ||||
Employee benefit asset | 2,334 | |||
Employee benefit obligation | (217) | |||
Net employee benefit asset | 2,117 |
€ million | 2023 | 2022 |
Defined benefit plans: | ||
Current service cost | 1 | 2 |
Administrative expenses | 17 | 19 |
18 | 21 | |
Defined contribution plans | 279 | 251 |
Pension costs recorded as employee costs | 297 | 272 |
€ million | 2023 | 2022 |
Interest income on scheme assets | (1,117) | (633) |
Interest expense on scheme liabilities | 955 | 584 |
Interest expense on asset ceiling | 59 | 23 |
Net financing credit relating to pensions | (103) | (26) |
€ million | 2023 | 2022 |
Return on plan assets excluding interest income | 857 | 9,360 |
Remeasurement of plan liabilities from changes in financial assumptions | 314 | (10,476) |
Remeasurement of plan liabilities from changes in demographic assumptions | 55 | (202) |
Remeasurement of experience losses | 430 | 627 |
Remeasurement of the APS and NAPS asset ceilings | (583) | 14 |
Exchange movements | – | 6 |
Pension remeasurements credited/(charged) to Other comprehensive income | 1,073 | (671) |
Tax arising on pension remeasurements | 3 | 9 |
Pension remeasurements charged to Other comprehensive income, net of tax | 1,076 | (662) |
€ million | 2023 | 2022 |
1 January | 23,668 | 34,370 |
Interest income | 1,114 | 633 |
Administrative expenses | (14) | (13) |
Return on plan assets excluding interest income | (857) | (9,360) |
Employer contributions | 49 | 22 |
Employee contributions | 8 | 6 |
Benefits paid | (1,065) | (1,301) |
Exchange movements | 284 | (689) |
31 December | 23,187 | 23,668 |
2023 | |||||
€ million | APS | NAPS | Other | Total | 2022 |
Return seeking investments | |||||
Listed equities – UK | 8 | 109 | 6 | 123 | 139 |
Listed equities – Rest of world | 1 | 438 | 163 | 602 | 1,047 |
Private equities | 29 | 677 | 15 | 721 | 1,566 |
Properties | – | 1,577 | 14 | 1,591 | 2,142 |
Alternative investments | 35 | 1,695 | 2 | 1,732 | 1,881 |
73 | 4,496 | 200 | 4,769 | 6,775 | |
Liability matching investments | |||||
Government issued fixed bonds | 861 | 5,132 | 127 | 6,120 | 5,279 |
Government issued index-linked bonds | 874 | 9,438 | 8 | 10,320 | 8,093 |
Asset and longevity swaps | 899 | – | – | 899 | 1,114 |
Insurance contract | 3,353 | – | 38 | 3,391 | 3,392 |
5,987 | 14,570 | 173 | 20,730 | 17,878 | |
Other Cash and cash equivalents | 50 | 640 | 7 | 697 | 684 |
Derivative financial instruments | (38) | (2,985) | 8 | (3,015) | (1,688) |
Other investments | (2) | 3 | 5 | 6 | 19 |
10 | (2,342) | 20 | (2,312) | (985) | |
Total scheme assets | 6,070 | 16,724 | 393 | 23,187 | 23,668 |
€ million | 2023 | 2022 |
1 January | 1,248 | 1,247 |
Interest expense | 59 | 23 |
Remeasurements | (583) | 14 |
Exchange movements | 11 | (36) |
31 December | 735 | 1,248 |
€ million | 2023 | 2022 |
1 January | 20,292 | 31,622 |
Current service cost | 1 | 2 |
Interest expense | 952 | 584 |
Remeasurements – financial assumptions | 314 | (10,476) |
Remeasurements – demographic assumptions | 55 | (202) |
Remeasurements of experience losses | 430 | 627 |
Benefits paid | (1,065) | (1,301) |
Employee contributions | 8 | 6 |
Exchange movements | 252 | (570) |
31 December | 21,239 | 20,292 |
2023 | 2022 | |||||
Other | Other | |||||
Per cent per annum | APS | NAPS | schemes | APS | NAPS | schemes |
Discount rate | 4.50 | 4.55 | 1.0 - 7.1 | 4.85 | 4.80 | 0.8 - 7.2 |
Rate of increase in pensionable pay | 3.20 | – | 2.0 - 5.0 | 3.40 | – | 2.0 - 6.0 |
Rate of increase of pensions in payment | 3.20 | 2.65 | 0.7 - 3.4 | 3.40 | 2.80 | 0.3 - 3.0 |
RPI rate of inflation | 3.20 | 3.00 | 2.2 - 2.9 | 3.40 | 3.20 | 2.2 - 3.1 |
CPI rate of inflation | 2.65 | 2.65 | 2.0 - 2.5 | 2.80 | 2.80 | 2.0 - 2.6 |
Mortality assumptions | 2023 | 2022 |
Life expectancy at age 60 for a: | ||
• male currently aged 60 | 27.5 | 27.9 |
• male currently aged 40 | 28.8 | 29.1 |
• female currently aged 60 | 29.0 | 29.3 |
• female currently aged 40 | 31.2 | 31.5 |
Increase in scheme liabilities | |||
Other | |||
€ million | APS | NAPS | schemes |
Discount rate (decrease of 50 basis points) | 278 | 1,020 | 29 |
Future pension growth (increase of 50 basis points) | 243 | 973 | 5 |
Future mortality rate (one year increase in life expectancy) | 301 | 394 | 22 |
Derivatives to | |||||
Bank, other | mitigate | ||||
loans and | volatility in | ||||
asset financed | Convertible | Lease | financial | ||
€ million | liabilities | bond | liabilities | liabilities | Total |
Balance at 1 January 2023 | 9,760 | 605 | 9,619 | (71) | 19,913 |
Proceeds from borrowings | 1,001 | – | – | – | 1,001 |
Repayment of borrowings | (4,268) | – | – | – | (4,268) |
Repayment of lease liabilities | – | – | (1,731) | – | (1,731) |
Settlement of derivative financial instruments | – | – | – | (119) | (119) |
Total changes from financing cash flows | (3,267) | – | (1,731) | (119) | (5,117) |
Interest paid | (488) | (9) | (472) | 44 | (925) |
Interest expense | 476 | 9 | 508 | – | 993 |
New leases and lease modifications | – | – | 1,315 | – | 1,315 |
Fair value movements | – | 130 | – | 322 | 452 |
Other non-cash movements | 1 | – | (13) | (2) | (14) |
Exchange movements | (102) | – | (259) | 6 | (355) |
Balance at 31 December 2023 | 6,380 | 735 | 8,967 | 180 | 16,262 |
Bank, other | Derivatives to | ||||
loans and | mitigate | ||||
asset | volatility in | ||||
financed | Convertible | Lease | financial | ||
€ million | liabilities | bond 2 | liabilities | liabilities | Total |
Balance at 1 January 2022 | 9,217 | 756 | 9,637 | (136) | 19,474 |
Proceeds from borrowings | 1,436 | – | – | – | 1,436 |
Repayment of borrowings | (1,050) | – | – | – | (1,050) |
Repayment of lease liabilities | – | – | (1,455) | – | (1,455) |
Settlement of derivative financial instruments | – | – | – | 1,036 | 1,036 |
Total changes from financing cash flows | 386 | – | (1,455) | 1,036 | (33) |
Interest paid | (325) | (9) | (422) | (7) | (763) |
Interest expense | 368 | 9 | 464 | – | 841 |
New leases and lease modifications | – | – | 1,017 | – | 1,017 |
Fair value movements | – | (151) | – | (990) | (1,141) |
Other non-cash movements | 11 | – | (37) | – | (26) |
Exchange movements | 103 | – | 415 | 26 | 544 |
Balance at 31 December 2022 | 9,760 | 605 | 9,619 | (71) | 19,913 |
€ million | 2023 | 2022 |
Opening provisions | 3,548 | 2,999 |
Non-cash additions recorded in operating profit | 862 | 896 |
Non-cash releases of unused provisions recorded in operating profit | (133) | (137) |
Other non-cash amounts recorded within operating profit | 4 | 27 |
Cash settlements relating to operating provisions | (496) | (323) |
Movements in provisions recorded within net cash flows from operating activities | 237 | 463 |
Movements in provisions recorded within Other comprehensive income | 24 | (69) |
Movements elsewhere within the Balance sheet | (6) | (15) |
Unrealised currency differences arising on provisions recorded within operating profit | (68) | 127 |
Non-cash settlement of ETS obligations | (98) | (10) |
Movements in provisions recorded in the Income statement outside of operating profit | 103 | 53 |
Closing provisions (note 27) | 3,740 | 3,548 |
€ million | 2023 | 2022 |
Non-cash equity settled share-based payments | 50 | 36 |
Ineffectiveness arising on hedge accounting | 6 | 17 |
Non-cash movements on derivative and non-derivative financial instruments | 16 | 45 |
Settlement of interest rate derivatives | 44 | (7) |
Other | (5) | (15) |
111 | 76 |
€ million | 2023 | 2022 |
Purchase of property, plant and equipment – fleet | 2,715 | 3,146 |
Purchase of property, plant and equipment – other | 193 | 132 |
Purchase of intangible assets – ETS allowances | 264 | 360 |
Purchase of intangible assets – other | 372 | 237 |
3,544 | 3,875 |
€ million | 2023 | 2022 |
Cash flows arising from transactions giving rise to lease liabilities | ||
Total cash outflows arising from lease liabilities – aircraft | (2,076) | (1,699) |
Total cash outflows arising from lease liabilities – other | (127) | (178) |
Total cash inflows arising from sale and leaseback transactions – aircraft | 826 | 718 |
Cash flows arising from transactions that do not give rise to the recognition of lease liabilities | ||
Total cash outflows arising from short-term leases, low-value assets and variable lease payments | (25) | (41) |
Total cash inflows arising from the recognition of asset financed liabilities | (999) | 1,424 |
Total cash outflows arising from asset financed liabilities | (416) | (292) |
€ million | 2023 | 2022 |
Sales of goods and services | ||
Sales to associates | 5 | 5 |
Sales to significant shareholders | 261 | 141 |
Purchases of goods and services | ||
Purchases from associates | 72 | 61 |
Purchases from significant shareholders | 131 | 113 |
Receivables from related parties | ||
Amounts owed by associates | 18 | 13 |
Amounts owed by significant shareholders | 136 | 25 |
Payables to related parties | ||
Amounts owed to associates | 6 | – |
Amounts owed to significant shareholders | 12 | 26 |
Year to 31 December | ||
€ million | 2023 | 2022 |
Base salary, fees and benefits | ||
Board of Directors | ||
Short-term benefits | 4 | 4 |
Share-based payments | 1 | 1 |
Management Committee | ||
Short-term benefits | 15 | 15 |
Share-based payments | – | 2 |
Adjustment – | |||||
net gain on | |||||
sale of | Adjustment – | Adjustment – | |||
property, | unrealised | operating | |||
plant and | currency | cash flow | |||
€ million | As reported | equipment | differences | items | Restated |
Cash flows from operating activities | |||||
Operating profit | 1,256 | 22 | 1,278 | ||
Depreciation, amortisation and impairment | 2,070 | 2,070 | |||
Net gain on disposal of property, plant and equipment | – | (22) | (22) | ||
Movement in working capital | 1,884 | (1,884) | – | ||
(Increase)/decrease in trade receivables, inventories and other current assets | (914) | 914 | – | ||
Increase/(decrease) in trade and other payables and deferred | |||||
revenue | 2,798 | (2,798) | – | ||
Employer contributions to pension schemes | (22) | (22) | |||
Pension scheme service costs | 17 | 17 | |||
Payments related to restructuring | (81) | 81 | – | ||
Provisions and other non-cash movements | 627 | (627) | – | ||
Increase in provisions | – | 463 | 463 | ||
Unrealised currency differences | – | 19 | 19 | ||
Other movements | – | 76 | 76 | ||
Interest paid | (824) | 7 | (817) | ||
Interest received | 42 | 42 | |||
Tax paid | (134) | (134) | |||
Net cash flows from operating activities before movements in working capital | 4,835 | – | 19 | (1,884) | 2,970 |
Increase in trade receivables | – | (660) | (660) | ||
Increase in inventories | – | (21) | (21) | ||
Increase in other receivables and current assets | – | (233) | (233) | ||
Increase in trade payables | – | 886 | 886 | ||
Increase in deferred revenue | – | 1,236 | 1,236 | ||
Increase in other payables and current liabilities | – | 676 | 676 | ||
Net cash flows from operating activities | 4,835 | – | 19 | – | 4,854 |
Net cash flows from investing activities | (3,463) | – | – | – | (3,463) |
Net cash flows from financing activities | (56) | – | – | – | (56) |
Net increase in cash and cash equivalents | 1,316 | – | 19 | – | 1,335 |
Net foreign exchange differences | (12) | (19) | (31) | ||
Cash and cash equivalents at 1 January | 7,892 | 7,892 | |||
Cash and cash equivalents at year end | 9,196 | – | – | – | 9,196 |
Interest-bearing deposits maturing after more than three months | 403 | – | – | – | 403 |
Cash, cash equivalents and interest-bearing deposits | 9,599 | – | – | – | 9,599 |