International Consolidated Airlines Group (IAG) Q1 2025 earnings summary

Executive summary

• Revenue grew 9.6% year-over-year in Q1 2025, reaching EUR 7.044 billion, with strong demand across all core markets and brands, especially North and South Atlantic.

• Operating profit increased by EUR 130 million to EUR 198 million, with a 1.7 percentage point rise in operating margin to 2.8%, supported by transformation and operational improvements.

• Announced an order for 71 widebody aircraft and exercised options for 18 more, supporting long-term growth and replacement needs.

• Balance sheet strengthened, with net debt reduced by over EUR 1.38 billion to EUR 6.129 billion and net leverage at 0.9x.

• Shareholder returns delivered via sustainable dividends and EUR 530 million of share buybacks in 2025.

Financial highlights

• Total revenue reached EUR 7.044 billion (+9.6% year-over-year), with passenger revenue at EUR 6 billion (+6.5%).

• Operating profit was EUR 198 million (+EUR 130 million year-over-year), and profit after tax and exceptional items was EUR 176 million.

• Fuel unit costs fell by about 7% due to lower commodity prices and more efficient aircraft; non-fuel unit costs increased 8.8% in Q1.

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

• Net debt reduced to EUR 6.129 billion; net leverage at 0.9x and gross leverage at 2.2x.

Outlook and guidance

• Full-year outlook unchanged, with strong demand in core markets and planned capacity growth of around 3%.

• Non-fuel unit cost trend for 2025 expected to be a 4% increase, including FX headwinds.

• 80% of Q2 and 29% of H2 already booked, with revenue ahead of last year; visibility for H2 remains limited.

• Fuel bill for 2025 expected to be EUR 7.5 billion, with 65% hedged.

• Intention to return up to EUR 1 billion of excess capital within 12 months; capex planned at EUR 3.7 billion.