International Consolidated Airlines Group (IAG) Investor Update summary

Meeting formalities and agenda

• The AGM was held in Madrid with online participation, meeting all legal and quorum requirements.

• The agenda included approval of 2024 financial statements, non-financial and sustainability reports, board management, auditor re-election, dividend, and capital allocation.

• Proposals included share capital reduction, share buybacks, new aircraft acquisitions, and board member changes.

• All resolutions were made available to shareholders in advance and were approved by a large majority.

Financial and operational highlights

• 2024 revenue grew 9% to €32 billion, with operating profit before exceptional items up 26.7% to €4 billion and a margin of 13.8%.

• Free cash flow reached €3.6 billion, net debt was €7.5 billion, and leverage ratio stood at 1.1x.

• Interim and proposed final dividends total €0.09 per share, with €435 million returned to shareholders; a €350 million buyback was launched, and up to €1 billion more is planned.

• 19 new aircraft were delivered, and group capacity exceeded pre-pandemic levels, serving 122 million passengers.

Strategic vision and financial targets

• Focus on developing a strong Spanish platform with Madrid as a leading hub, targeting sustainable profitability and world-class margins of 12-15% operating margin and 13-16% RoIC in the medium term.

• Upgraded 'Flight Plan' ambition for Iberia to €1.4bn operating profit and 13.5-15% margin, reflecting 40% profit growth from 2024 levels.

• Transformation has delivered a turnaround from negative margins in 2012 to industry-leading profitability and returns in 2024.

• Rigorous capital allocation supports a €6bn investment programme up to the mid-2030s, focused on fleet renewal, customer experience, and digital transformation.

• Resilient business model with high variable cost flexibility, strong loyalty base, and counter-cyclical revenue streams from MRO and handling.