International Consolidated Airlines Group Sa · LSE:IAG
International Consolidated Airlines Group Sa — FY2025 Earnings Presentation
38 slides from International Consolidated Airlines Group Sa's earnings presentation, Feb 27, 2026
Slide 1: 2025 Full Year results
INTERNATIONAL AIRLINES GROUP We connect What matters 2025 Full Year results
Slide 2: Disclaimer
Disclaimer LEI: 9S9800TZHQRUSHIESLI3 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: Chief Executive Officer
Chief Executive Officer
Slide 4: A world-class business creating value for our shareholders
A world-class business creating value for our shareholders Delivering for our customers: - customer NPS 29.5; increase of +6.9pts - OTP 82.4%; driven by increase at BA of +7.6pts Delivering world-class financial results: - record operating profit of €5,024m and a record operating margin of 15.1% - r
Slide 5: Our world-class financial performance
Our world-class financial performance Revenue Operating Adjusted Net Free cash RolC (€m) profit (€m) EPS* (€c) leverage flow (€m) ii 18.5% 33,213 smargin 32,100 17.3% 29,453 69.5 SEB : 14.8% 5,024 56.8 17x 3,146 50.6 1x 0.8x 1,320 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024
Slide 6: Our proven structure delivers sector-leading results
Our proven structure delivers sector-leading results IAG Portfolio & financial strategy Share best practices Operating companies CSE <erusipeneee businesses BRITISH AIRWAYS > EXPRESS vueling IAGLoyalty= S"UTH IBERIA Aer Lingus 9% LEVEL IAGCargo = IBERIA Underpinned by transformation Shared services
Slide 7: Our strategy is delivering sustainable margins and returns
Our strategy is delivering sustainable margins and returns A sustainable value-creation Strategic imperatives A Capital-light earnings strong core growth framework Through-the-cycle target range 12-15% Operating Margin 13-16% Rolc <1.8x Net leverage FY25 15.1% 18.5% 0.8x Sustainable profitability ul
Slide 8: Strong execution underpins our value creation targets
Strong execution underpins our value creation targets British Airways is now a 15% margin business Operating margin (%) On track for €1.4bn profit at top-end margins at Iberia Operating profit (€m) 14.2% 18.2% 15% 9.9% H i en 2023 2024 2025 Ambition” 2025 Ambition* BE it — Grow IAG Loyalty earnings
Slide 9: Financial results
Financial results Nicholas Cadbury Chief Financial and Sustainability Officer
Slide 10: Delivering record operating profit and margin
Delivering record operating profit and margin IAG operating profit bridge by driver: Strong operating profit growth fern +13.1% 469 962 a |_| 165_ 5,024 7 = (1,329) FY-24 Passenger Cargo Other NF cost Fuel cost FX FY-25 Operating margin "Other revenue includes MRO and Handling businesses, IAG Loyalt
Slide 11: Excellent performances across the Group
Excellent performances across the Group a BRITISH AIRWAYS Holidays ; ; IAG Loyalty= FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 (€m) vLY (£m) vLY (€m) vLY (€m) vLY (£m) vLY Total revenue 2,529 +6.4% 14,679 +1.9% 8,085 +7.2% 3,264 +0.1% 2,600 +7.0% Passenger revenue 2,454 +6.6% 13,722 +1.9% 6,126 +4.5% 3
Slide 12: Demand driving strong revenue growth in our core markets
Demand driving strong revenue growth in our core markets Currently expect to grow capacity (ASK) by c.3% in 2026 Total Europe Domestic PRASK' PRASK ccy? ASKs CRASK CRASKccy ASKs CRASK CRASKccy ASKs Ql +3.2% +0.8% 43.2% (0.2)% .5)% Ql (4.5)% 6.29% +4,7% @Q2 +2.6% 42.1% 42.2% (0.7% (0.9)% Q2—+0.9% +0.
Slide 13: Non-fuel unit costs performance - in line with guidance
Non-fuel unit costs performance - in line with guidance FY 2026 guidance (0. 4)% Total unit cost & +2.8% Non-fuel cost (9.1)% Fuel FY 2025 performance +3.8% Employee +0.8% Supplier +10% Ownership Driven by operational investment and payments linked to strong financial performance Transformation init
Slide 14: Adjusted EPS increased by 22.4% in FY 2025
Adjusted EPS increased by 22.4% in FY 2025 Year to 31 December Before Before exceptional Exceptional Reported exceptional Exceptional Reported €m items 2025 items 2025 items 2024 items 2024 Revenue 33,213 = 33,213 32,100 = 32,100 Operating costs 28,189 = 28,189 27,657 160 27,817 Operating profit 5,0
Slide 15: Consistently generating high levels of free cash flow
Consistently generating high levels of free cash flow Fy 2025 FY 2024 (€m) (€m) Operating profit! 5,024 4,443 Depreciation 2,628 2,364 Working capital 550 (82) Provisions (excl. carbon-related obligations) (56) 122 Purchase of carbon assets net of change in carbon obligations (18) 62 Interest paid (
Slide 16: Managing a strong and efficient balance sheet
Managing a strong and efficient balance sheet 31December 31December 31 December €m 2023 2024 2025 Gross debt 16,082 17,345 14,267 of which bank and other loans 2,688 2,911 1,978 of which asset financed and lease liabilities 13,394 14,434 12,289 Gross debt / EBITDA before exceptional items 2.9x 2.5x
Slide 17: Investing in our business at high rates of return
Investing in our business at high rates of return Gross capital expenditure Delivery of delayed B777-9, B737 replacement aircraft, and 71 widebody from 2025 orders 17 aircraft c.€5.6bn * Core market strategy to deliver disciplined deliveries, retrofits average capacity growth of 2% to 4% in the medi
Slide 18: Excellent financial performance supports strong balance sheet, investing in the business and rewarding shareholders
Excellent financial performance supports strong balance sheet, investing in the business and rewarding shareholders Maintain a ng balance sheet Maintain net debt / EBITDA < 1.8x across the cycle Gross leverage 1.5x - 2.0x $3bn RCF to 2029 undrawn Investing business Disciplined investment at RoIC of
Slide 19: Delivering our strategy
Slide 20: Well-established strategy creating value for shareholders
Well-established strategy creating value for shareholders Capital-light A sustainable value A strong core . . earnings growth creation framework 7 N a 7X Growing our portfolio of Developing our Loyalty and Retforming disciplined woe as capital allocation and global leadership positions Holidays busi
Slide 21: Demand for travel is strong across our core markets
Demand for travel is strong across our core markets Premium demand is resilient 80% of premium flyers expect to travel the same or more in premium in 2026 Travel is a protected priority 4in5 protect their holiday spend, even if cutting back elsewhere such as entertainment subscriptions North Atlanti
Slide 22: Diversified portfolio of leading positions in our core markets
Diversified portfolio of leading positions in our core marketsi a, = ° 3 @Q North Atlantic Latin America Intra-Europe Q x #1 long-haul market from Europe by size #1 investment market for Spanish Spain #1 domestic market in Europe (IAG © (€37bn! market) companies outside the EU 55% seat share)*, and
Slide 23: Investing in our brands
Investing in our brands Upgraded Lounges Starlink rollout at all airlines > n Zz = fe) 3 Q fe) oO = 0) 2025 NPS 29.5pts ~» ~ STARLINK In-flight Experience Brand Partnerships Digital Experience Continuous improvement in customer NPS +6. — 2025 +4, coors 2023 oa 7 IAG" 2025 Full Year results 23
Slide 24: Transformation plan delivering across various key metrics
Transformation plan delivering across various key metrics On-time é Premium focus Unit Cost Performance — | Top tier +1 9.9pts population Total cost per ASK 2025 vs 2019 Improvement 30% 80.3% 20% 72.7% . 60.4% PRASK in “om premium cabins, LATAM Bn —% 2019 2025 Vueling Lec Lec Lec Total PRASK 2023 20
Slide 25: IAG Loyalty earnings double vs 2019 levels
IAG Loyalty earnings double vs 2019 levels Operating Profit* (£m) Loyalty Highlights « Renewed two largest non-air partnerships on long- 507** term deals: American Express & JPM Chase 469 — * Strong performance vLY: 420 * +10% more active customers ' * +13% more Avios issued * +9% more Avios redeeme
Slide 26: Our partnerships provide capital-light global reach
Our partnerships provide capital-light global reach FINNAIR SLATAM JAPAN AIRLINES PES as CHINA SOUTHERN 3,000+ partner aircraft accessible through joint businesses Level of partnership: HEE Joint business scopes GB Codeshare Interline 2,600 new markets 97% coverage with partners 18,700 partner seats
Slide 27: Making progress on sustainability in 2025
Making progress on sustainability in 2025 4 2. ro) ior 0) a : Sustainable 2 ; 5 Aviation Fuel Bg ss) &> 8 ro) S Tonnes of SAF Of total IAG Of global SAF Tonnes of CO, used in 2025 fuel supply avoided Recognition * Global Environmental Sustainability Airline Group of the Year - CAPA * Ist place, and
Slide 28: Our people are critical to our success
Our people are critical to our success We invest in our people, building We hired >10.5k people this year — future-ready skills and supporting Inclusive and merit-based decisions culture supporting business growth, improved their early careers that strengthen our ability to attract and ry perform Ki
Slide 29: Delivering best-in-class total shareholder returns
Delivering best-in-class total shareholder returns Our TSR algorithm Sustainable growth Sustainable profitability Attractive shareholder Secular long-term demand returns Operating leverage driving | world-class margins Sustainable ordinary dividend Unique strength in our through the cycle network, D
Slide 30: Outlook
Outlook ¢ Executing our strategy and transformation will continue to deliver: - revenue and earnings growth at high margins and high return on invested capital - significant free cash flow leading to a stronger balance sheet as we build towards a step up in capital expenditure - rewards for our shar
Slide 31: Appendices
Appendices
Slide 32: Modelling assumptions FY2026
Modelling assumptions FY2026 + Revenue - Capacity increase of c.3% - continuing disciplined focus on our core markets - Cargo revenue affected by annualising high yields in 2025 from shipping disruption Other revenue expected to grow by low-single-digits Q1 bookings are strong and with the additiona
Slide 33: Q4: similar profit compared to a record in Q4 2024
Q4: similar profit compared to a record in Q4 2024 IAG operating profit bridge by driver IAG operating profit bridge by business €m -28 €m 728 234 39 —_ —_ 1121 | @) | 16 1,093 1121 331,093 : = Q . 28 15 36 237) x) zmDhmlUlU Cll lClU eC qs) (25) 4-24 Pax Cargo Other NF cost Fuel cost FX Q4-25 Q4-24
Slide 34: Cash bridge Dec-24 to Dec-25
Cash bridge Dec-24 to Dec-25 €m €(1,509)m Free cash flow of €3,146m 7,652 566 Repayment of lease liabilities €1,344m —=— __ (442) — -—_— GI) 74) 1,160 = 9,828 G,442) (567) 55) 974) 370) Me 8319 1,243 1243) (a7) (435) Actual EBITDA* Deferred Payment. Other WC Net Gross Proceeds Repayment Repayment Re
Slide 35: Fuel hedging - c62% hedged for 2026
Fuel hedging - c62% hedged for 2026 As per 31/12/25 jet curve Q1 2026 @2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Jet fuel price scenario $680/mt $660/mt $650/mt $650/mt $650/mt $650/mt $/€ scenario 1174 1.174 1.174 1.174 1.174 1.174 Hedge ratio 75 % 64 % 58 % 50 % 39 % 31% Effective blended price post
Slide 36: FY 2026 capacity planned to be c.3% higher than 2025
FY 2026 capacity planned to be c.3% higher than 2025 by quarter vLY ASK growth for FY 2026 vLY "4 oe +2% +3% +4% +3% +3% ‘ a * 5% —% 9% 3% FY ee Airline contribution to IAG ASK growth Airline contribution to total [AG Q126 Q2-26 Q3-26 Q4-26 FY-26 Note: British Airways includes BA CityFlyer and BA Eu
Slide 37: Delivering best-in-class total shareholder returns
Delivering best-in-class total shareholder returns 3-year TSR* AG Te 0 IAG (Madrid) United Airlines Ryanair Delta Air Lines easyJet Jet2 American Airlines Lufthansa AF-KLM Wizz Air TAGE eee 2025 Full Year results 37
Slide 38: Alternative Performance Measures (APMs) and terminology
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 FY 2025 Results Release (alternative performance measures section, note b: earnin
International Consolidated Airlines Group — FY2025 Earnings Presentation on 6ix