International Consolidated Airlines Group (IAG) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with revenue up 9% to EUR 32.1 billion and operating profit up 27% to EUR 4.44 billion, driven by strong network, brand strength, and transformation initiatives.

• Transformation program delivered a 13.8% operating margin and 17.3% return on invested capital, surpassing previous targets.

• Free cash flow reached EUR 3.56 billion, net debt reduced by EUR 1.7 billion to EUR 7.52 billion, and net leverage improved to 1.1x.

• Announced EUR 435 million in ordinary dividends, EUR 350 million share buyback, and intention to return up to EUR 1 billion excess capital in the next 12 months.

• Focused on strengthening core markets, growing asset-light businesses, and ensuring long-term sustainability and resilience.

Financial highlights

• Net profit after tax and exceptional items reached EUR 2.73 billion.

• Free cash flow of EUR 3.56 billion after EUR 2.8 billion in investments; net cash from operations was EUR 6.4 billion.

• Adjusted EPS reached 56.8 euro cents.

• Net debt reduced by EUR 1.7 billion year-over-year, with net leverage at 1.1x, well below the 1.8x target.

• Ordinary dividend of EUR 435 million and EUR 350 million share buyback, with intention to return up to EUR 1 billion excess capital in the next 12 months.

Outlook and guidance

• Expect continued strong free cash flow in 2025, though lower than 2024 due to EUR 557 million VAT payment and increased CapEx to EUR 3.7 billion.

• Capacity growth planned at around 3% in 2025, focusing on core markets.

• Operating margin guidance remains at 12%-15%, with British Airways targeting 15% by 2027.

• Unit cost inflation for 2025 expected at 2%-2.5%, with FX headwinds adding another 2%, mainly in the first half.

• Committed to a sustainable ordinary dividend and up to EUR 1 billion further excess capital return in 12 months.