International Consolidated Airlines Group Sa · LSE:IAG
International Consolidated Airlines Group Sa — Q3 2025 Earnings Presentation
22 slides from International Consolidated Airlines Group Sa's earnings presentation, Nov 7, 2025
Slide 1: Connecting people, businesses and countries
Connecting people, businesses and countries 2025 Quarter Three results
Slide 2: Disclaimer
Disclaimer LEI: 959800TZHQRUSH1ESL13 Forward-looking statements: Certain statements included in this announcement are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and uncertainties beca
Slide 3: Strong value creation: on track for another year of growing revenue, profit and shareholder returns
Strong value creation: on track for another year of growing revenue, profit and shareholder returns • Another very good quarter of profit growth • Strong revenue performance: PRASK at constant currency -0.3% on a record Q3 '24 • Effective cost control helped to deliver a 2.0% increase in Q3 operatin
Slide 4: Financial Highlights
Financial Higigighirs 4
Slide 5: Q3 operating profit: building on record profit in Q3 2024
Q3 operating profit: building on record profit in Q3 2024 IAG operating profit bridge by driver: IAG operating profit bridge by business: Further profit growth in a strong quarter Strong markets, hubs and brands €m +40 €m +40 58 177 18 2,053 240 (7) 31 2,013 56 64 2,053 240 200 (6) 2,013 200 (20) (8
Slide 6: Q3: individually and collectively strong margins
Q3: individually and collectively strong margins Aer Lingus British Airways Iberia* Vueling Q3 2025 Q3 2025 Q3 2025 Q3 2025 Q3 2025 (€m) (£m) (€m) (€m) (£m) Total revenue 788 +5.6% 4,029 +0.3% 2,150 +2.0% 1,077 (0.5)% 749 +7.2% Passenger revenue 769 +5.9% 3,805 +0.7% 1,717 +0.4% 1,070 (0.6)% 358 +7.
Slide 7: Q3: Strong revenue overall; challenging in specific markets
Q3: Strong revenue overall; challenging in specific markets Currently expect to grow capacity (ASK) by c2.5% in 2025 North Atlantic Domestic Europe % v24 ASKs PRASK c(3.5)pts FX impact % v24 ASKs PRASK % v24 ASKs PRASK Q3 2.9% (7.1)% Q3 3.7% (4.0)% Q3 2.4% (6.0)% 31.9% of Group Q3 ASKs 7.8% of Group
Slide 8: Good non-fuel unit cost performance - in line with guidance
Good non-fuel unit cost performance - in line with guidance Q3 2025 Cost category Q3 2025 unit cost (% vLY) Agreed salary increases partly mitigated by productivity benefits from more punctual Employee 2.9% operations Supplier (2.9)% Supplier inflation offset by mainly procurement-driven transformat
Slide 9: Adjusted EPS increased by 27% in 9M 2025
Adjusted EPS increased by 27% in 9M 2025 Nine months to 30 September Before Before exceptional Exceptional Reported exceptional Exceptional Reported €m items 2025 items 2025 items 2024 items 2024 Revenue 25,234 – 25,234 24,053 – 24,053 Operating costs 21,303 – 21,303 20,731 – 20,731 Operating profit
Slide 10: Stronger balance sheet gives capital allocation optionality
Stronger balance sheet gives capital allocation optionality • Net leverage of 0.8x 30 September 31 December 30 September €m 2024 2024 2025 – Leverage to increase modestly at the year-end in line with the usual Gross debt 16,026 17,345 14,783 seasonal booking patterns of which bank and other loans 2,
Slide 11: Disciplined capital allocation to support profitable growth and shareholder returns
Disciplined capital allocation to support profitable growth, best-in-class margins and sustainable shareholder returns Maintain balance Invest in rebuilding Improve customer Commitment to Excess cash returned sheet strength our fleet experience, sustainable to shareholders if resilience, digital div
Slide 12: Delivering our strategy
Delivering our strategy
Slide 13: Our strategy to deliver world-class margins and returns
Our strategy to deliver world-class margins and returns Strategic imperatives Medium-term ambition A strong core 12-15% operating margin Sustainable profitability Capital-light earnings 13-16% RoIC growth A robust financial and Accretive <1.8x net leverage through cycle sustainability framework grow
Slide 14: Excellent operations delivering OTP and NPS improvement
Excellent operations delivering OTP and NPS improvement British Airways Iberia • Rebuilding long-haul: Bangkok moves to year-round, Miami • New transatlantic markets unlocked through XLRs: Orlando, Recife twice-daily. New short-haul leisure routes to Rabat/Graz and Fortaleza in Winter 2025/26; Monte
Slide 15: Outlook
Outlook • Our outlook for the full year is unchanged; revenue positively booked for Q4 • We are on track to deliver another year of revenue and earnings growth, margin progress and strong shareholder returns • Demand for travel remains strong. We are well positioned, with a strong business model wit
Slide 16: Strong fundamentals underpin best-in-class value creation
Strong fundamentals underpin best-in-class value creation Strong Strong Strong Value Position Execution Creation Unique strength in our Delivering world-class Sustainable earnings + = network, hubs and margins growth brands Delivered by our Strong free cash flow Premium customers transformation gene
Slide 17: Appendices
Appendices
Slide 18: Strong operating profit growth in 9M 2025
Strong operating profit growth in 9M 2025 IAG operating profit bridge by driver: IAG operating profit bridge by business: Profit improvement supported by transformation, fuel and FX Strong markets, hubs and brands €m +609 €m +609 430 59 3,931 102 17 728 149 — 258 3,931 335 290 3,322 (36) — 3,322 (22
Slide 19: Modelling assumptions
Modelling assumptions • Revenue – Full year capacity increase of c.2.5% • Non-fuel unit costs – Non-fuel unit costs are assumed to increase by around 3% in 2025, as previously guided at our Half Year 2025 results • Fuel costs – Total fuel bill to be c.€7.1bn, based on jet forward curve and foreign e
Slide 20: Fuel hedging - 76% hedged for the remainder of 2025
Fuel hedging - 76% hedged for the remainder of 2025 As per Q3 2025 results Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Jet fuel price scenario $720/mt $710/mt $690/mt $690/mt $690/mt $680/mt $/€ scenario 1.177 1.177 1.177 1.177 1.177 1.177 Hedge ratio 76 % 63 % 56 % 45 % 36 % 29 % Effective blen
Slide 21: FY 2025 capacity planned to be c.2.5% higher than 2024
FY 2025 capacity planned to be c.2.5% higher than 2024 Q4 2025 FY 2025 Airline contribution to IAG ASK growth Airline contribution to total IAG ASKs by quarter vLY ASK growth for FY 2025 vLY vLY vLY +3.2% +2.2% +2.4% +2.3% +2.5% 5.0% 6.9% 0.9% 1.7% 2.3% 1.2% 0.7% 3.5% 40.2% 11.3% FY-25 2.3% 2.5% Q1-
Slide 22: Alternative Performance Measures (APMs) and terminology definitions
Alternative Performance Measures (APMs) and terminology definitions Measure IFRS/APM Definition Source of calculation Adjusted earnings per share APM Based on results before exceptional items after tax and adjusted for Q3 2025 Results Release (alternative performance measures section, note b: earnin
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