DAVY VIEW

IAG has reported an operating profit of €2053m, 2% behind consensus of €2096m (Davy: €2103m). PRASK was down 2.4% (-0.3% at constant currency) in the quarter with ex-fuel unit costs broadly stable, with a resulting operating margin of 22%. Net leverage at the end of the quarter stood at 0.8x. With the €1bn buyback near complete, the company intends to announce further returns of excess cash at its February full-year results. IAG has reiterated its full-year outlook. As a result, we do not expect material changes to consensus or our estimates. FY25 consensus €4981m (Davy: €4856m).