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 is being returned to shareholders via dividends and buybacks.

• Net leverage reduced to 0.7x, reflecting a strong balance sheet and financial flexibility.

• Transformation programs and efficiency initiatives supported a 2.9 percentage point increase in operating margin to 11.8%.

• 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 of €2,097 million generated in H1; operating cash flow €3,800 million.

• CapEx was €1,690 million in H1, in line with guidance, reflecting delivery of 13 new aircraft.

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

Outlook and guidance

• Non-fuel unit costs expected to increase around 3% for the year, improved from previous 4% guidance.

• Fuel costs for the year expected to be around €7.1 billion, with 77% hedged for H2.

• CapEx guidance for the year remains at €3.7 billion, with 25 new aircraft deliveries expected.

• Bookings for H2 are 57% as of July 29, in line with last year; demand remains strong in core markets.

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