International Consolidated Airlines Group S.A. (IAG) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen, and welcome to International Airlines Group half-year 2025 results. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session through the phone lines, and instructions will follow at that time. I would like to remind all participants that this call is being recorded. I want to hand over to Luis Gallego, Chief Executive Officer, to open the presentation. Please go ahead. Thank you very much. Good morning, everyone, and welcome to IAG's half-year results for 2025. As usual, I have Nicolas Cadbury with me, our Chief Financial and Sustainability Officer, as well as other members of the IAG Management Committee. I would like to remind you of the key elements that make IAG a world-class investment case. Firstly, our fundamentals are strong. We have unique strengths in our network, our hubs, and our brands. Our customer base is strong and resilient across all of our areas. And we are growing our earnings opportunity through IAG loyalty and our global partnerships. Secondly, our execution is strong. We are consistently delivering world-class margins through our transformation program powered by our talented employees across the globe. And thirdly, we are creating substantial value for our shareholders through sustainable earnings growth, robust F3 cash flow generation, and significant shareholder returns. We have had a strong first half of 2025. Our new group by 8% reflecting continued strong demand for our network and brands. Operating profit reached almost 1.9 million euros, up 43.5% year on year, with Q2 delivering 1.68 billion euros, an increase of 35.4%. Our transformation program supported a 2.9 percentage point increase in operating margin to 11.8%, as we improve our customer offeri...