Second-quarter revenue was broadly flat at €8.9bn (€9.2bn expected), with higher prices offset by capacity reductions due to disruptions in the Middle East and the unfavourable timing of Easter.
Underlying operating profit fell 16% to €1.4bn (€1.4bn expected), with the decline driven by higher fuel costs. But fuel and non-fuel costs were both lower than expected, keeping profits in line with forecasts despite revenue falling short.
First-half free cash flow rose 39% to €2.9bn, benefitting from favourable timing of plane deliveries. Net debt fell by €1.3bn to €4.7bn.
Full-year fuel cost guidance has been lowered from around €9.0bn to between €8.3-8.6bn. Capacity is expected to be in line with last year.
€0.8bn of the ongoing €1.5bn share buyback programme has been completed.
The shares fell 2.5% in early trading.
Our view
HL view to follow.
IAG key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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