Source: Sharecast
Adjusted operating profit rose 26% to €4.4bn, beating estimates of €4.08bn. Debt fell to €7.5bn from €9.25bn a year earlier.
“We have seen ongoing strong demand for travel throughout 2024 and now into 2025, particularly across our core markets. Leisure travel remains robust as a major priority for households and in recent years we have seen this boosted by a shift as customers value experiences over material purchases,” the company, which also owns Aer Lingus, Iberia and Vueling.
“In addition, in the ‘visiting friends and relatives’ segment, globalisation has created resilient, reliable demand to both ends of the route network. Corporate travel increased through the year, although we estimate that it will not fully recover to pre-Covid 19 levels, particularly for short duration and short-haul trips.”
However, IAG noted that business travel may never recover to pre-pandemic levels, in particular short-haul trips, as businesses look to trim costs.
Interactive Investor head of markets Richard Hunter said significant cash generation has helped IAG in dealing with "arguably the biggest thorn in its side, namely net debt, which represents an overhang from the days of the pandemic when the group was forced to ratchet up borrowings to survive".
"Despite the obvious economic challenges which many consumers are currently facing, the annual holiday seems to have become shielded from day-to-day financial constraints as something of a must-have, and IAG’s combination of brands serve many different customer types to a multitude of destinations."
Reporting by Frank Prenesti for Sharecast.com