International Consolidated Airlines Group Sa · LSE:IAG
International Consolidated Airlines Group Sa — Q3 2024 Earnings Presentation
20 slides from International Consolidated Airlines Group Sa's earnings presentation, Nov 8, 2024
Slide 1: Connecting people, businesses and countries
Connecting people, businesses and countries 2024 Quarter Three results 1
Slide 2: Disclaimer
Disclaimer LEI: 959800TZHQRUSH1ESL13 Forward-looking statements: Certain statements included in this document and any related conference call or webcast (including any related Q&A session) are forward-looking. These statements can be identified by the fact that they do not relate only to historical
Slide 3: Highlights
Highlights Luis Gallego Chief Executive Officer
Slide 4: Growing revenue, profit and margins; announcing €350m buyback
Growing revenue, profit and margins; announcing €350m buyback • Executing our strategy has driven very strong financial performance in the third quarter: o Increase in total revenue by 7.9% o Increase in operating profit by 15.4% to €2,013m o Increase in operating margin by 1.4pts to 21.6% • Demand
Slide 5: Financial results
Financial results Nicholas Cadbury Chief Financial Officer 5
Slide 6: Very strong financial performance in the third quarter
Very strong financial performance in the third quarter €m IAG operating profit by driver €m IAG operating profit by business +268 +268 5 10 105 (57) 2,013 12 (9) 41 (421) 307 2,013 537 (25) 31 1,745 1,745 Q3-23 Pax Cargo Other Non- Fuel cost Currency Q3-24 Q3-23 British Iberia excl. Vueling Aer IAG
Slide 7: Q3 key metrics
Q3 key metrics ASKs 93,280m Activity +5.7% vLY Total revenue Total pax revenue PRASK Load factor €9,329m €8,270m €8.87c 89.9% Commercial +7.9% vLY +6.9% vLY +1.2% vLY +1.0pts vLY performance Total expenditure CASK Fuel CASK Non-fuel CASK €7,316m €7.84c €2.20c €5.64c Cost performance +6.0% vLY +0.3%
Slide 8: Strong quarter across our businesses; strike impact at Aer Lingus
Strong quarter across our businesses; strike impact at Aer Lingus Q3 2024 Q3 2024 Q3 2024 Q3 2024 Q3 2024 vLY vLY vLY vLY vLY (€m) (£m) (€m) (€m) (£m) Total revenue 746 (3.0)% 4,016 +5.8% 2,107 +8.5% 1,082 +0.1% 699 16.2% Passenger revenue 726 (3.8)% 3,777 +5.2% 1,711 +9.8% 1,077 +0.1% 333 +56.1% Op
Slide 9: Strong performance in our core markets
Strong performance in our core markets North Atlantic Europe % v23 ASKs PRASK % v23 ASKs PRASK Q3 +3.9% +3.5% Q3 +5.3% +1.4% 32% of Group Q3 2024 ASKs 28% of Group Q3 2024 ASKs Total Domestic Asia Pacific % v23 ASKs PRASK % v23 ASKs PRASK % v23 ASKs PRASK Q3 +5.7% +1.2% Q3 +4.1% (0.4)% Q3 +17.6% (15
Slide 10: Profit after tax and exceptional items of €2,340m in 9M 2024
Profit after tax and exceptional items of €2,340m in 9M 2024 Nine months to 30 September Before Before Exceptional Exceptional €m exceptional Statutory 2024 exceptional Statutory 2023 items items items 2024 items 2023 Revenue 24,053 - 24,053 22,229 - 22,229 Operating costs 20,731 - 20,731 19,224 - 1
Slide 11: Increasingly strong balance sheet
Increasingly strong balance sheet €m 30 Sep 2023 31 Dec 2023 30 Sep 2024 Gross debt 17,227 16,082 16,026 Bank and other loans 3,567 2,688 2,720 Asset financed and lease liabilities 13,660 13,394 13,306 Cash, cash equivalents and interest-bearing 9,218 6,837 9,837 deposits Net debt 8,009 9,245 6,189
Slide 12: Our capital allocation framework supports profitable growth, margins and sustainable shareholder returns
Our capital allocation framework supports profitable growth, margins and sustainable shareholder returns Maintain balance sheet strength (<1.8x across the cycle) 1.0x at 30 Sep 2024 Invest in rebuilding our fleet 20 aircraft for FY24 Improve customer experience, digital and sustainability c.€3.1bn c
Slide 13: Business overview and outlook
Business overview and outlook Luis Gallego Chief Executive Officer
Slide 14: Focusing on our brands and our core markets
Focusing on our brands and our core markets • New flights to Denver, resumption of Minneapolis. A321 XLR to Nashville, Indianapolis; LHR operated with A320neo’s (lower airport charges) • Faster boarding process on short-haul flights for AerClub members; refreshed lounge at Heathrow, Disney+ content
Slide 15: Outlook for 2024
Outlook for 2024 • Planned capacity growth for FY 2024 at c.+6% ASKs; Q4 2024 c.+5% • Non-fuel unit cost expected to be up around 2% for the year • Expected total fuel cost in FY 2024 of c.€7.7bn* • Leverage to increase modestly by year end • Expect our strong financial performance to continue for t
Slide 16: Summary
Summary • We expect positive long-term, sustainable demand for travel • Executing our transformation programme to deliver world-class margins and returns • Disciplined capital allocation: continue to expect to generate significant free cash flow, maintain a strong balance sheet and invest in the bus
Slide 17: Appendices
INTERNATIONAL AIRLINES GROUP
Slide 18: Fuel hedging - 76% for Q4 2024; c.61% for FY 2025
Fuel hedging - 76% for Q4 2024; c.61% for FY 2025 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Jet fuel price scenario $690/mt $700/mt $700/mt $710/mt $710/mt $710/mt $/€ scenario 1.114 1.114 1.114 1.114 1.114 1.114 Hedge ratio 76% 71% 65% 59% 48% 32% Effective blended price post fuel and FX hedg
Slide 19: FY 2024 capacity planned to be c.6% higher than 2023
FY 2024 capacity planned to be c.6% higher than 2023 Airline contribution to IAG Airline contribution to total IAG ASKs Q4 2024 FY 2024 vLY vLY ASK growth by quarter vLY ASK growth for FY 2024 vLY +7% +8% +6% +5% +6% +5% +4% +4% +5% +8% +14% +4% +19% +2% +1% +5% +6% Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Not
Slide 20: Alternative Performance Measures (APMs) and Financial terminology definitions
Alternative Performance Measures (APMs) and Financial terminology definitions Measure IFRS/APM Definition Source of calculation Operating profit (and other Income statement APM See Q3 2024 Interim Management Report (alternative performance measures Q3 2024 Interim Management Report (Reconciliation o
International Consolidated Airlines Group, S.A. (IAG) — Q3 2024 Earnings Presentation on 6ix