International Consolidated Airlines Group (IAG) Q3 2024 earnings summary

Executive summary

• Revenue increased by 7.9% year-over-year, with Q3 2024 operating profit up 15.4% to €2,013m and operating margin rising to 21.6%, supported by robust demand in core markets.

• Announced a €350m share buyback and paid an interim dividend of €0.03 per share in September.

• Continued investment in fleet renewal, digital initiatives, and operational resilience across all airlines.

• For the nine months to September 30, operating profit reached €3.3bn and operating margin was 13.8%.

Financial highlights

• Q3 2024 total revenue reached €9,329m, up 7.9% year-over-year; operating profit was €2,013m, up €268m from Q3 2023.

• Passenger unit revenue (PRASK) grew by 1.2% year-over-year, with load factor at 89.9%.

• Net debt reduced to €6,189m, with net debt/EBITDA at 1.0x as of 30 Sep 2024; total liquidity at €13,306m.

• Non-fuel costs rose 2.2% due to wage settlements and supplier inflation, but fuel unit costs improved by 4.2%.

• Free cash flow generation and liquidity position strengthened.

Outlook and guidance

• FY 2024 capacity planned to be approximately 6% higher than 2023; Q4 2024 capacity growth expected at 5%.

• Non-fuel unit cost expected to rise around 2% for the year; total fuel cost forecasted at €7.7bn.

• Capacity growth for 2025 likely at the lower end of the 3-4% range due to resilience and disruption factors.

• Leverage expected to increase modestly by year-end due to seasonal booking patterns.

• Strong financial performance anticipated to continue for the remainder of 2024.