Half Year 2025 International Consolidated Airlines Group SA Earnings Call Transcript
Key Points
- Revenue grew by 8% to just under EUR16 billion, reflecting strong demand for the company's network and brands.
- Operating profit increased by 43.5% year-on-year, reaching almost EUR1.9 billion.
- The transformation program supported a 2.9 percentage point increase in operating margin to 11.8%.
- Net leverage is at 0.7 times, providing flexibility on capital allocation.
- Adjusted EPS grew by 70%, with EUR1.5 billion announced for shareholder returns through dividends and share buybacks.
- Passenger revenue growth was offset by a small decline in overall load factors.
- Vueling's operating profit margin remained flat due to weaker demand in some markets like Germany and the Benelux.
- IAG Loyalty's operating profit was flat year-on-year due to the adoption of HMRC's VAT view, which the group disputes.
- Non-fuel unit costs increased by 6.6% in H1, driven by foreign exchange impacts and increased costs in non-airline businesses.
- Capacity growth was reduced from 3% to 2.5% for the year due to engine availability issues and geopolitical disruptions.
Good morning, ladies and gentlemen, and welcome to International Airlines Group half 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, and welcome to IAG's half year results for '25. As usual, I have Nicholas Cadbury with me, our Chief Financial and Sustainability Officer; as well as other members of the IAG management committee.
I would like to remind you of the key elements that make IAG a world-class investment case. Firstly, our fundamentals are strong. We have unique strengths in our network, our hubs, and our brands. Our customer base is strong and resilient across all of our airlines. And we are growing our earnings opportunity through IAG Loyalty and our global partnerships.
Secondly, our execution is
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