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International Consolidated Airlines Group SA
MAD:IAG

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International Consolidated Airlines Group SA
MAD:IAG
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Price: 4.83 EUR 0.04% Market Closed
Market Cap: €23.7B

International Consolidated Airlines Group SA
Investor Relations

International Consolidated Airlines Group SA, commonly referred to as IAG, stands as a powerhouse in the global aviation industry. Born from the merger of British Airways and Iberia in 2011, the company has expanded its operations to include multiple carriers such as Aer Lingus, Vueling, and LEVEL. Each airline under IAG's expansive umbrella retains its distinct brand identity, allowing the conglomerate to cater to a diverse customer base across various segments. Operating in Europe, North America, and beyond, IAG leverages the strengths of its constituent airlines to optimize routes, reduce costs, and maximize its market influence. This strategic model enables it to navigate the volatile winds of the aviation sector with agility, from luxury long-haul flights to budget-friendly short skips.

IAG's revenue engine is fueled primarily by its passenger services, with a significant portion also deriving from cargo operations. This dual revenue stream helps cushion the company against potential variances in travel demand, especially during unpredictable economic climates. Additionally, ancillary services such as inflight retail, loyalty programs, and partnerships with hotels and car rental firms fortify its financial backbone. The synergy between its airlines fosters operational efficiencies, whether through shared aircraft, joint procurement agreements, or harmonized IT platforms. This intricate web of operations not only helps in achieving economies of scale but also reinforces IAG’s resilience amidst industry challenges, such as fluctuating fuel costs and stringent environmental regulations.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 7, 2025
AI Summary
Q3 2025

Strong Margins: IAG delivered market-leading operating margins of 22% in Q3, with all airlines posting over 20% margins; 15.2% margin achieved over the last 12 months.

Revenue Growth: Passenger revenue increased by EUR 177 million (up 2%) year-on-year, despite some currency headwinds and flat PRASK at constant currency versus a record quarter last year.

Cost Discipline: Nonfuel unit cost increases moderated to flat in Q3, after a 4.6% rise in Q2, benefiting from transformation initiatives and procurement savings.

Positive Outlook: Bookings for Q4 and early 2026 are tracking positively across most regions, with strong demand, especially on long-haul routes.

Shareholder Returns: Interim dividend of EUR 220 million announced; share buyback program of GBP 1 billion nearly complete, with further returns planned at full-year results.

Loyalty Program Growth: IAG Loyalty grew operating profit by GBP 16 million year-on-year, with a multi-year American Express partnership extension signed.

Full-Year Guidance: 2025 outlook is unchanged; management expressed confidence in meeting consensus profit expectations (just under EUR 5 billion).

Key Financials
Operating Margin
22%
Last 12 Months Operating Margin
15.2%
Passenger Revenue
EUR 177 million increase
PRASK
broadly flat at constant currency
Iberia Operating Profit
EUR 510 million
Iberia Operating Margin
23.7%
Aer Lingus Operating Profit
EUR 170 million
Aer Lingus Operating Margin
21.6%
British Airways Operating Profit
down GBP 18 million
British Airways Operating Margin
20.2%
Vueling Operating Profit
EUR 272 million
Vueling Operating Margin
just over 25%
IAG Loyalty Operating Profit
GBP 141 million
IAG Loyalty Operating Margin
nearly 19%
Capacity Growth (ASK)
Up 2.4%
Unit Revenue (Total)
Down 2.4%
North Atlantic Capacity Increase
Up 2.9%
North Atlantic Unit Revenue
Down 7.1%
South Atlantic Capacity Increase
Up 2.9%
South Atlantic Unit Revenue
Up 0.6%
Europe Unit Revenue
Down 6%
Operating Profit (9M)
up 18%
Profit After Tax (Pre-exceptional, 9M)
EUR 2.7 billion
Adjusted Earnings Per Share
Up 27%
Gross Leverage
1.9x
Net Leverage
0.8x
Net Debt
relatively flat year-on-year
CapEx (2025 Full Year Forecast)
GBP 3.7 billion
Interim Dividend
EUR 220 million
Shareholder Returns (2025 YTD)
GBP 1.2 billion share buybacks plus GBP 400 million dividends
Fuel Costs (2025 Full Year Forecast)
EUR 7.1 billion
Earnings Call Recording
Other Earnings Calls

Management

Mr. Luis Gallego Martin
CEO & Executive Director
No Bio Available
Mr. Nicholas Theodore Cadbury FCA
CFO & Interim Non-Executive Chairman of Cargo
No Bio Available
Mr. Jorge Saco
Chief Information, Procurement, Services & Innovation Officer
No Bio Available
Mr. Stuart Morgan
Head of Investor Relations
No Bio Available
Ms. Sarah Clements
General Counsel
No Bio Available
Mr. Jonathan Sullivan
Chief Transformation & Corporate Development Officer
No Bio Available
Mr. Glenn Morgan
Head of Digital Business Transformation
No Bio Available
Mr. Julio Rodriguez
Chief Commercial Strategy Officer
No Bio Available
Mr. Alvaro Lopez-Jorrin Hernandez
Secretary of the Board of Directors
No Bio Available
Ms. Lynne Louise Embleton
Chairman & CEO of Aer Lingus
No Bio Available

Contacts

Address
WEST DRAYTON
Harmondsworth
Waterside (HAA2), PO Box 365
Contacts