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IAG Reports Strong First-Half Performance, Signals Optimistic Outlook
International Airlines Group (IAG) has announced impressive financial results for the first half of 2025, with a 8% year-on-year increase in group revenue to €15.9 billion. The company's operating profit before exceptional items rose 43.5% to €1.88 billion, reflecting a 2.9 percentage point improvement in the operating margin to 11.8%.
IAG's CEO, Luis Gallego, attributed the strong performance to the resilience of demand for travel. The company returned €1.5 billion to shareholders through dividends and share buybacks, and reduced net debt from €7.52 billion to €5.46 billion, maintaining a strong balance sheet and generating significant free cash flow.
Confidence in delivering continued earnings growth and margin progression for the full year 2025 was expressed, buoyed by resilient travel demand and solid bookings for the second half, with 57% already booked as of late July.
Despite these strengths, the statement indicated a cautious approach towards potential geopolitical and macroeconomic uncertainties. The company's main operations, along with Spanish carrier Vueling and Irish airline Aer Lingus, are all contributing to the positive results.
However, the statement did not provide updated figures for IAG's profit after tax or group revenue for the second half of 2025. Neither did it mention any new orders for Boeing or Airbus planes, despite the announcement of a multi-billion-dollar order in May 2025.
CEO Gallego expressed optimism, stating, "I am confident in delivering good earnings growth for the full year of 2025." The statement did not provide a new comment on the strong demand for IAG's network and brands, which was previously highlighted as a key factor in the company's performance.
In summary, IAG's first-half results and positive booking trends support an optimistic 2025 outlook for the company's financial performance. The statement, issued on a Friday in 2025, reported a profit after tax of €1.3 billion ($1.5 billion) for the first half of 2025.
[1] IAG Press Release, "IAG reports strong first half results", 2025 [2] Reuters, "IAG reports strong first-half performance", 2025 [3] Financial Times, "IAG's first-half profit jumps 43.5%", 2025 [4] Sky News, "IAG signals cautious optimism for 2025", 2025 [5] IAG Investor Relations, "H1 2025 Results Presentation", 2025
IAG's optimistic outlook for the full year 2025 is partly due to the strong finance performance in the first half of the year, which boosted their lifestyle and business ventures. With travel demand remaining resilient, CEO Gallego remains confident in their ability to generate significant free cash flow and support further investments, potentially including new orders for Boeing or Airbus planes.
