International Consolidated Airlines Group (IAG) Q1 2025 earnings summary

Executive summary

• Revenue grew 9.6% year-over-year in Q1 2025, reaching EUR 7.04 billion, with operating profit up EUR 130 million to EUR 198 million and margin up 1.7 points to 2.8%, driven by strong demand and operational improvements, especially at British Airways.

• Transformation programme and robust performance across all core markets, particularly North and South Atlantic, contributed to results despite Heathrow's one-day closure.

• Announced order for 71 widebody aircraft and exercised options for 18 more, supporting long-term strategy; 5 new aircraft delivered in Q1.

• Balance sheet strengthened with net leverage at 0.9x, enabling sustainable dividends and share buybacks.

• Shareholder returns delivered via ordinary dividend of EUR 0.06 per share and up to EUR 1 billion share buyback program.

Financial highlights

• Total revenue reached EUR 7.04 billion (+9.6% year-over-year), with passenger revenue at EUR 6 billion (+6.5%).

• Operating profit increased by EUR 130 million to EUR 198 million, with margin up 1.7 points to 2.8%.

• Profit after tax and exceptional items was EUR 176 million for Q1 2025.

• Net debt decreased by over EUR 1.4 billion to EUR 6.13 billion; net leverage at 0.9x.

• Load factor was 82.7% (down 0.4 points year-over-year); total CASK EUR 8.65c (+4.3%).

Outlook and guidance

• Full-year outlook unchanged; strong demand continues in core markets, especially Latin America and Europe, despite geopolitical and macroeconomic uncertainty.

• Capacity growth planned at around 3% for 2025, with medium-term growth targeted at 4%-5% per year.

• 80% of Q2 and 29% of H2 already booked, with revenue ahead of last year.

• Non-fuel unit cost trend expected to increase by approximately 4% for the year, including FX headwinds.

• Fuel bill for 2025 expected to be EUR 7.5 billion, with 65% hedged; capex planned at EUR 3.7 billion.