International Consolidated Airlines Group (IAG) Q2 2024 earnings summary

Executive summary

• Operating profit for H1 2024 reached €1,309 million, up €49 million year-over-year, driven by strong demand, positive unit revenue growth, and transformation initiatives.

• Total revenue for H1 2024 was €14,724 million, an 8.4% increase compared to H1 2023.

• Free cash flow increased to €3.17 billion, supporting a robust balance sheet.

• Interim dividend of 3 € cents per share declared, reflecting confidence in the business and strategy.

• Withdrawal from Air Europa acquisition, incurring a €50 million exceptional charge, but maintaining a 20% stake.

Financial highlights

• Operating profit before exceptional items was €1,309 million, margin at 8.9%.

• Net profit after tax and exceptional items was €905 million, aided by a €135 million exceptional tax credit.

• Passenger unit revenue (PRASK) grew 2.9% year-over-year; load factor reached 85%, up 0.9 pts.

• Free cash flow generation of €3.17 billion after €1.4 billion CapEx; net debt reduced to €6.4 billion, net debt/EBITDA at 1.1x.

• Total liquidity increased to €13.2 billion; group revolving credit facility expanded to $3 billion.

Outlook and guidance

• Capacity guidance for full year 2024 remains at 7% increase; non-fuel unit cost expected to rise slightly.

• Bookings for Q3 at 81% of expectations, with strong demand in North Atlantic, Latin America, and Europe; some weakness in Asia.

• Confident in generating significant free cash flow and maintaining a strong balance sheet for the full year.

• Medium-term targets: operating margin 12–15%, ROIC 13–16%, annual capacity growth 4–5% (2024–2026).