Q1 2025 International Consolidated Airlines Group SA Earnings Call Transcript
Key Points
- International Consolidated Airlines Group SA (BABWF) reported a 9.6% increase in revenue for Q1 2025, driven by strong performance in core markets, particularly the North and South Atlantic.
- Operating profit increased by EUR130 million to EUR198 million, with a margin improvement of 1.7 percentage points to 2.8%.
- The company announced an order for 53 widebody aircraft and 18 orders in Q1, signaling confidence in long-term growth.
- Net debt decreased by over EUR1.4 billion to EUR6.2 billion, strengthening the balance sheet and positioning the company for shareholder returns.
- Iberia and Aer Lingus showed strong performance, with Iberia achieving a 7.5% operating margin and Aer Lingus improving its operating results by EUR27 million.
- The closure of Heathrow Airport in March cost British Airways approximately EUR50 million, impacting overall performance.
- Non-fuel unit costs increased by 8.8% in Q1, driven by foreign exchange impacts and costs from non-airline businesses.
- The US point-of-sale for economic leisure travel showed some softness, although premium cabins remained strong.
- Visibility for the second half of the year is limited, with only 29% of bookings confirmed, creating uncertainty.
- Asia Pacific remains the smallest market for the company, with capacity still only at 50% of 2019 levels.
Good morning, ladies and gentlemen, and welcome to the International Airlines Group first-quarter year 2025 results. (Operator Instructions)
I would like to remind all participants that this call is being recorded.
I will now hand over to Luis Gallego, Chief Executive Officer, to open the presentation. Please go ahead.
Thank you very much. Good morning, everyone. Welcome to our update for the first quarter of 2025. As usual, I'm joined by Nicholas Cadbury, our CFO; as well as the rest of the IAG management committee.
I would like to begin today by highlighting the key attributes about IAG that helped to deliver the strong results in the first quarter and underpin our long-term world-class targets. Our fundamentals are strong. We have unique strengths in our network, hubs, and brand. Our customer base is high quality across all of our airlines, and we have additional businesses that drive capital light, high-margin earnings
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