International Consolidated Airlines Group (IAG) Q3 2024 earnings summary

Executive summary

• Revenue increased by 7.9% year-over-year in Q3 2024, with operating profit up 15.4% to €2,013 million and operating margin rising 1.4 points to 21.6%, supported by robust demand in core markets.

• Announced a €350 million share buyback and interim dividend of €0.03 per share, reflecting confidence in ongoing performance.

• Continued focus on customer proposition, operational resilience, and investment in fleet and digital initiatives.

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

• Strong demand in North America, Latin America, and intra-Europe supported a 1.2% increase in passenger unit revenue.

Financial highlights

• Q3 2024 total revenue reached €9,329 million, with operating profit up €268 million year-over-year to €2,013 million.

• Net profit after tax for the nine months was €2,340 million.

• Load factor improved by 1.0 point to 89.9%, and PRASK increased 1.2% year-over-year.

• Net debt reduced to €6,189 million, with net debt/EBITDA at 1.0x as of September 30, 2024.

• Total liquidity increased to €13,306 million.

Outlook and guidance

• Full-year 2024 capacity planned to be approximately 6% higher than 2023, with Q4 capacity growth expected at 5%.

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

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

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

• Capacity growth for the next few years likely at the lower end of the 3-4% range due to supply chain and resilience needs.