IAG (International Airlines Group) unveils Q1 results 2025: strong start to 2025. Outlook unchanged

Highlights: 

• Revenue growth of 9.6%, reflecting the strength of our business 

• Operating profit before exceptional items increased by € 130 million to € 198 million as strong revenue growth and a lower fuel price offset expected cost increases. Operating margin increased by 1.7 pts to 2.8% 

• Good operational performance, particularly at British Airways. Iberia and Vueling continue to be amongst the most punctual airlines in the world 

• Ordered 71 widebody aircraft to support long-term strategy 

• Stronger balance sheet driven by free cash flow and disciplined capital allocation: net leverage at 0.9x and gross debt reduced by €1,859 million compared to 31 December 2024 

• Delivering for our shareholders through a sustainable dividend and up to €1 billion share buyback 

Outlook for 2025 Trading 

• Whilst being mindful of the geopolitical and macroeconomic uncertainty, our outlook for the full year is unchanged 

• We are continuing to see good demand for air travel across our core markets and for our brands, highlighting the strength of our portfolio 

• Latin America and Europe continue to be strong and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure 

• As of 6 May we are around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half, broadly in line with last year 

Modelling assumptions 

• Capacity increase of c.3% is unchanged. We continue to review our plans for the winter season and 2026 

• Non-fuel unit costs are assumed to increase by around 4% in 2025 including the adverse impact of foreign exchange, weighted to the first half of the year, as previously guided at our Full Year 2024 results 

• Capital expenditure for the year is expected to be around €3.7 billion 

• Total fuel cost is expected to be €7.5 billion (based on jet fuel forward curve and foreign exchange rates at the end of Q1) as the Group benefits from recent falls in the price of oil.

Finally the intra-European market continues to be robust. IAG capacity increased by 1.8% in the quarter and passenger unit revenue decreased very slightly (by 0.2%), despite the negative impact of the timing of Easter and the Heathrow closure on 21 March 2025; c.1% - adverse impact of the closure of London-Heathrow airport on 21 March (around € 50 million of operating profit).