International Consolidated Airlines Group (IAG) Q2 2025 earnings summary

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 was announced for shareholder returns via dividends and buybacks.

• Operating margin improved by 2.9 percentage points to 11.8%, supported by efficiency initiatives and transformation programs.

• Net leverage reduced to 0.7x, reflecting strong cash flow and balance sheet flexibility.

• 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 for H1 2025 was €2,097 million, with gross capex of €1,690 million.

• Net debt reduced to €5,459 million (from €7,517 million at 2024 year-end); net leverage at 0.7x.

• Passenger revenue up 5.6% year-over-year; capacity increased 2.7%, yields up 3.9%.

Outlook and guidance

• Confident in delivering further earnings growth, margin progression, and strong shareholder returns for FY 2025, despite ongoing geopolitical and macroeconomic uncertainties.

• Bookings for H2 are 57% as of late July, in line with last year.

• Capacity expected to increase by ~2.5% for FY 2025; non-fuel unit cost growth now guided at ~3%.

• Fuel cost for 2025 projected at €7.1 billion; 77% of 2025 fuel hedged.

• Capex for 2025 targeted at ~€3.7 billion, with 25 new aircraft deliveries expected.