IAG’s first-quarter revenue rose 1.9% to €7.2bn (€7.1bn expected). This was driven by higher ticket prices, fuller planes, and a small increase in capacity.
Underlying operating profit jumped 77.3% higher to €351mn (€275mn expected). This was due to broadly flat operating costs, which meant the revenue growth flowed straight onto a small profit base.
Net debt fell by €1.8bn to €4.2bn, helped by increased cash generation.
Due to the Middle East conflict, full-year fuel costs are now expected to be around €9.0bn, up by €1.6bn compared to prior group expectations. As a result, full-year free cash flow guidance has been lowered from above €3.0bn to below €3.0bn.
The group expects to complete the remaining €1.0bn of its ongoing €1.5bn share buyback programme by February 2027.
The shares fell 2.6% in early trading.
Our view
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IAG key facts
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