International Airlines Group (IAG) closed the 2024 financial year with an operating profit before exceptional items of €4.44 billion, marking a 26.7% increase from the €3.51 billion reported in 2023. The group’s total revenue grew 9% to €32.1 billion, fueled by network expansion and strong airline performance.
IAG CEO Luis Gallego stated that the results reflect "the quality of our airlines and the effectiveness of our strategy," highlighting the successful execution of the group's transformation program.
Financial Performance and Strategy
IAG’s operating margin before exceptional items reached 13.8%, up from 11.9% in 2023, while free cash flow rose to €3.56 billion after an investment of €2.82 billion in the business. The company also reduced its net debt by €1.73 billion, closing the year at €7.52 billion.
In addition, IAG announced a supplementary dividend of €0.06 per share, bringing the total annual dividend to €0.09 per share. The group also launched a €350 million share buyback program and plans to return up to €1 billion to shareholders over the next 12 months.
"We are achieving first-class margins and profits, in line with the targets we set for the market just over a year ago," Gallego emphasized.
Growth Across Major Airlines
IAG’s airlines posted strong operational results in 2024. British Airways reported an operating profit of £2.05 billion, with a 14.2% margin, while Iberia and Vueling ranked among the world's most punctual airlines.
Passenger traffic also saw broad-based growth, with IAG carrying 122 million passengers in 2024, a 5.6% increase compared to 2023. The load factor reached 86.5%, with Latin America and the Caribbean standing out—capacity in the region increased by 12.2%, further solidifying IAG’s presence in this market.
2025 Outlook
IAG expects to maintain strong growth in 2025, with a 3% capacity expansion and significant free cash flow generation. The group will continue investing in fleet modernization and sustainability programs, aiming to achieve 2% Sustainable Aviation Fuel (SAF) usage in 2025.
"We remain focused on making our brands the first choice for customers while ensuring disciplined capital allocation," Gallego concluded.
Strategic Investments and Key Markets
IAG is advancing its growth strategy through fleet investments, route expansion, and customer experience enhancements. The company’s focus remains on strengthening its presence in strategic markets, enhancing its global network, and improving operational efficiency.
Sustained Demand and Market Expansion
Travel demand remained strong throughout 2024 and into early 2025, driven by an increased interest in leisure travel and visits to family and friends (VFR). The corporate travel segment also showed signs of recovery, though it has yet to return to pre-pandemic levels.
Regarding network expansion, British Airways continues to grow in North America, focusing on premium travel. By late 2025, it will be the only airline offering a First-Class cabin on transatlantic flights from London. Meanwhile, Iberia has strengthened its leadership in the Europe-Latin America market, increasing its market share in the region by three percentage points compared to 2019.
In 2024, Iberia increased frequencies to Buenos Aires, São Paulo, Santiago de Chile, and Santo Domingo. In 2025, it will add more flights to Lima and continue expanding in South America. LEVEL, IAG’s low-cost carrier, expanded capacity in Santiago de Chile and will operate the Barcelona-Santiago route year-round starting in 2025. LEVEL also obtained its air operator certificate (AOC), becoming an independent airline.
Fleet Investments and Operational Efficiency
IAG added 19 new aircraft in 2024 and plans to receive 26 additional units in 2025, including two wide-body aircraft and 10 Airbus A321XLRs. This model, already in operation with Iberia and Aer Lingus, enables higher route profitability and increased frequencies to key destinations.
British Airways and Iberia are also upgrading their cabin products, introducing new business-class suites and expanding premium offerings on long-haul routes. "We are investing in larger, more efficient aircraft to reduce costs and enhance the customer experience," IAG highlighted.
Sustainability and Financial Strength
In 2024, IAG achieved its carbon intensity target ahead of schedule, reaching 78.1 gCO₂/pkm, below the 80 gCO₂/pkm goal. The company signed strategic agreements with SAF suppliers such as Repsol, Twelve, and Infinium, securing the necessary supply to meet the 2% SAF mandate in the UK and EU by 2025.
From a financial perspective, IAG emphasized disciplined capital allocation, reducing its net leverage ratio to 1.1x, down from 1.7x in 2023 and 3.1x in 2022. The group plans to continue lowering its debt through bond buybacks and increasing the number of unencumbered aircraft.
"Our strategy is designed to deliver sustainable growth with top-tier margins, driving value creation for our shareholders," the company stated.
AUTOR
Contando la aviación desde marzo del año 2000. Fundador y Managing Editor de Aviacionline.
Comentarios
Para comentar, debés estar registrado
Por favor, iniciá sesión