10 C-Suite Insights from IAG’s Earnings Call
Photo Credit: A file image of a British Airways Airbus A350 aircraft. British Airways / Stuart Bailey
Skift Take
Best known as the parent company behind British Airways, IAG’s sphere of influence stretches far beyond the UK. Here are 10 must-know nuggets from Friday’s full-year earnings call.
IAG continues to assert its earnings power. The group – which operates big-name airlines including British Airways, Iberia, and Aer Lingus – posted the best full-year results in its history on Friday.
Operating profit grew 27%, with an overall operating margin of 13.8%. Building on what CEO Luis Gallego describes as a “highly attractive” customer base, the company now boasts industry leading profitability. British Airways led the way, underpinned by robust performance on key North American routes.
Looking beyond the headline numbers, here are 10 key takeaways and C-Suite comments from an earnings call that was one of the most upbeat in recent memory.
1. IAG Loyalty is BoomingThe notion of loyalty being an important part of the modern airline mix is nothing new. However, Friday’s IAG earnings call offered valuable new insights into how critical it is to group profitability.
IAG Loyalty (IAGL) is now its third-largest operating company by profit, behind only British Airways and Iberia. In 2024, the subsidiary delivered double-digit profit growth and £420 million ($530m) in profit. Gallego highlighted the loyalty division’s asset-light, cash-generative model, noting that IAGL is now the biggest driver of capital-light earnings growth in the group.
The IAG CEO said loyalty performance is going from strength-to-strength, and set out an ambition to continue growing the business at more than 10% a year.
IAGL has almost doubled its profit since 2019 and grew by over 14% last year. New Avios currency partnerships with Finnair and Loganair in the previous 12 months have further boosted its consumer appeal, building on its more established agreement with Qatar Airways.
2. No Immediate BA BacklashMore than 20 million Avios were collected every hour last year, up 24% versus 2023. However, it hasn’t been entirely smooth flying. The new year started with a controversial shift to a spend-based model at British Airways’ loyalty program. This sparked a public backlash and resulted in modest concessions being announced several weeks later.
Reflecting the depth of feeling surrounding the BA loyalty changes, the very first question from investors on Friday to IAG bosses was about the impact of the move. In response, Sean Doyle, British Airways CEO, said no changes in travel patterns were reported since the overhaul was announced.
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