IAG H1 earnings surge amid 'robust' travel demand
British Airways owner posted a strong set of H1 results on Friday, with "robust" travel demand and operational improvements boosting profitability.
IAG said revenue had risen 8% year-on-year to €15.91bn in the six months ended 30 June, while operating profits before exceptional items surged 43.5% to €1.88bn. Adjusted earnings per share jumped nearly 70%.
The FTSE 100-listed group cited favourable fuel costs, foreign exchange tailwinds, and a strong performance across its core brands and geographies as key drivers of H1 growth.
Margins improved by 2.9 percentage points to 11.8%, supported by IAG's transformation programme and cost discipline, while net debt fell to €5.46bn, with leverage down to 0.7x EBITDA.
British Airways, Iberia, and Aer Lingus all contributed to profit growth, with Iberia benefiting from higher unit revenue and increased MRO income. Vueling, on the other hand, saw a slight decline, reflecting softer intra-Europe demand.
Looking ahead, IAG said it remains confident in delivering FY earnings growth and margin progression, despite ongoing geopolitical and macroeconomic uncertainty.
Reporting by Iain Gilbert at Sharecast.com
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