IAG cash position reaches €4.9bn

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IAG has further strengthened its cash position on the back of a strong first-half performance.

The group – encompassing British Airways, Iberia and Vueling made a €230 million ($300 million) operating profit in the six-month period, reversing a €345 million loss in 2013's first half.

IAG's cash position jumped to €4.9 million from €3.6 billion at 30 June 2013.

BA's cash position was €3.1 billion, Iberia's €814 million, Vueling's €765 million and that of the parent and holding companies €228 million at 30 June. This compares with €2.1 billion held by BA a year ago, while Iberia and Vueling had cash balances of €690 million and €549 million, respectively.

Included in the cash position are equivalent funds of €189 million, which relate to funds recognised by Venezuela's Central Bank but not yet repatriated, says IAG. Of these, €184 million was translated at a rate of 6.3 bolivar to the US dollar the rate applicable throughout 2013 and the remaining €5 million at 10.4, the average rate applicable from the beginning of 2014.

Cash and cash equivalents totalled €1.82 billion at 30 June, compared with €1.95 billion a year ago.

First-half net cash flow from operating activities amounted to €1.81 billion, compared with €957 million last year.

Net cash flow from investing activities totalled €1.95 billion, up from €415 million, and the group generated €374 million in net cash flows from financing activity, up from €38 million.

The adjusted net debt of the group decreased €452 million to €5.25 billion compared with 31 December 2013, while adjusted gearing improved four points.