DAVY VIEW

IAG has delivered an operating profit before exceptionals of €198m (consensus: €133m, Davy: €64m), an improvement of €130m versus last year. Margin improved by 1.7ppts to 2.8% for the quarter. Revenue was a key driver of the Q1 consensus beat, with revenues up 9.6% and PRASK up 3.2%. There was significant ex-fuel cost inflation for the quarter of 8.8% mitigated by fuel tailwinds (-7.1%). For 2025, capacity is up c.3%. On bookings and pricing: “As of May 6th, we are around 80% booked for the second quarter, with revenue ahead of last year and 29% booked for the second half, broadly in line with last year”. While specific profitability guidance has not been issued at this stage in the year, the company has stated its outlook remains unchanged for FY25. We expect consensus to broadly hold (consensus operating result: €4600m, Davy: €4608m).