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International Consolidated Airlines Group (IAG) investor relations material
International Consolidated Airlines Group Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue grew 8% year-over-year to €15,906 million, with operating profit before exceptional items up 43.5% to €1,878 million, driven by strong demand and transformation initiatives.
Adjusted EPS increased 69.9% to 26.5 euro cents, and €1.5 billion is being returned to shareholders via dividends and buybacks.
Net leverage reduced to 0.7x, reflecting a strong balance sheet and financial flexibility.
Transformation programs and efficiency initiatives supported a 2.9 percentage point increase in operating margin to 11.8%.
Strategic investments in fleet, technology, and sustainability underpin long-term value creation.
Financial highlights
H1 2025 total revenue: €15,906 million (+8.0% year-over-year); operating profit: €1,878 million (+43.5%).
Profit after tax: €1,301 million (+43.8%); basic EPS: 27.3 cents (+48.4%).
Free cash flow of €2,097 million generated in H1; operating cash flow €3,800 million.
CapEx was €1,690 million in H1, in line with guidance, reflecting delivery of 13 new aircraft.
Net debt reduced to €5,459 million (from €7,517 million at 2024 year-end).
Outlook and guidance
Non-fuel unit costs expected to increase around 3% for the year, improved from previous 4% guidance.
Fuel costs for the year expected to be around €7.1 billion, with 77% hedged for H2.
CapEx guidance for the year remains at €3.7 billion, with 25 new aircraft deliveries expected.
Bookings for H2 are 57% as of July 29, in line with last year; demand remains strong in core markets.
Confident in delivering further earnings growth, margin progression, and strong shareholder returns for FY 2025 despite macroeconomic and geopolitical uncertainties.
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