International Consolidated Airlines Group Sa · LSE:IAG
International Consolidated Airlines Group Sa — Q1 2026 Earnings Presentation
18 slides from International Consolidated Airlines Group Sa's earnings presentation, May 8, 2026
Slide 1: We connect what matters: 2026 Quarter One Results
We connect what matters 2026 Quarter One Results
Slide 2: Disclaimer
Disclaimer LEI: 959800TZHQRUSH1ESL13 Forward-looking statements: This announcement contains forward-looking statements within the meaning of applicable securities laws. This cautionary statement is made for the purpose of providing protection for such forward-looking statements and is intended to qu
Slide 3: Highlights
Highlights Luis Gallego Chief Executive Officer
Slide 4: A strong first quarter; confident in the long-term prospects
A strong first quarter; confident in the long-term prospects • Revenue in the first quarter increased by 1.9% to €7,181m reflecting continued strong demand for our network and airline brands • Operating profit increased by 77.3% in the first quarter, driven by revenue growth and limited impact on co
Slide 5: Financial results
Financial results Nicholas Cadbury Chief Financial and Sustainability Officer
Slide 6: Delivering a strong first quarter
Delivering a strong first quarter €m IAG operating profit bridge by driver: €m IAG operating profit bridge by business: Strong operating profit growth Profit improvement in most of our brands +77.3% 510 10 (30) +153 (198) 27 21 351 27 28 48 351 98 (48) (187) 198 198 Q1-25 Passenger Cargo Other Non-f
Slide 7: Improving margins across most of our businesses
Improving margins across most of our businesses Q1 2026 Q1 2026 Q1 2026 Q1 2026 Q1 2026 (€m) vLY (£m) vLY (€m) vLY (€m) vLY (£m) vLY Total revenue 420 (4.1)% 3,389 +7.1% 1,808 (1.1)% 616 +8.6% 579 +10.0% Passenger revenue 406 (3.4)% 3,167 +8.2% 1,352 +4.5% 609 +8.0% 290 +1.8% Operating result before
Slide 8: Demand driving strong yields in all our markets
Demand driving strong yields in all our markets Total Europe Domestic PRASK1 PRASK ccy2 ASKs CRASK CRASK ccy ASKs CRASK CRASK ccy ASKs Q1 3.5% 8.2% +0.2% Q1 3.5% 6.0% -1.6% Q1 16.8% 18.2% -2.5% 22.9% of Group Q1 ASKs 8.2% of Group Q1 ASKs North Atlantic CRASK CRASK ccy ASKs Q1 -0.2% 6.8% -0.4% 27.7%
Slide 9: Q1 non-fuel unit costs in line with our expectations, with FX benefit
Q1 non-fuel unit costs in line with our expectations, with FX benefit Q1-26 unit cost Cost category Q1 2026 (% vLY) Employee 0.5% Reflects capacity-driven headcount growth and the impact of wage deals Supplier* (4.0)% Transformation initiatives partially mitigated inflationary pressures Increase dri
Slide 10: Adjusted EPS increased by 56.5% in Q1 2026
Adjusted EPS increased by 56.5% in Q1 2026 Three months to 31 March Before Before exceptional Exceptional Reported exceptional Exceptional Reported €m items 2026 items 2026 items 2025 items 2025 Revenue 7,181 – 7,181 7,044 – 7,044 Operating costs 6,830 – 6,830 6,846 – 6,846 Operating profit 351 – 35
Slide 11: Continued balance sheet strengthening
Continued balance sheet strengthening 31 March 31 December 31 March • Net leverage of 0.5x, reflecting strong €m 2025 2025 2026 profitability and cash generation Gross debt 15,486 14,267 14,244 • Gross leverage of 1.8x, driven by higher of which bank and other loans 1,706 1,978 1,802 EBITDA* of whic
Slide 12: Middle East Conflict
Middle East Conflict • Capacity – c.3% of total Group pre-conflict ASKs flew to the Middle East region – some redeployment to markets benefitting from diverted demand – further fleet resilience added to better manage engine supply chain issues • Jet fuel hedging and availability – well-hedged for th
Slide 13: Outlook
Outlook • Well-positioned to manage current headwinds due to the unique strengths of the Group • Demand continues to be robust; booked revenue at 80% for Q2 • Expect to be able to recover c.60% of higher fuel cost through revenue and cost initiatives, with a strong track record of execution • Expect
Slide 14: Appendices
Appendices
Slide 15: Modelling assumptions FY2026
Modelling assumptions FY2026 • Capacity will be lower than the 3% increase guided at full year results in February as a result of our actions taken already. At present we expect it to increase by c.1% in Q2 and c.2% in Q3. We continue to review our longer term capacity plans. • Based on the fuel cur
Slide 16: Fuel hedging - 70% hedged for 2026
Fuel hedging - 70% hedged for 2026 As per Q1 2026 results Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Jet fuel price scenario $1,460/mt $1,310/mt $1,160/mt $1,060/mt $960/mt $960/mt $/€ scenario 1.155 1.155 1.155 1.155 1.155 1.155 Hedge ratio 75 % 68 % 62 % 49 % 40 % 35 % Effective blended price
Slide 17: Q2 and Q3 capacity plans
Q2 and Q3 capacity plans Airline contribution to IAG ASK growth by quarter vLY 0% +1% +2% Q1-26 Q2-26 Q3-26 BA Iberia LEVEL Aer Lingus Vueling Note: British Airways includes BA Cityflyer and BA Euroflyer; Iberia includes Iberia Express 2026 Quarter One Results 17
Slide 18: 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 Q1 2026 Interim Management Statement (alternative performance measures section, e
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