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IAG: flying high - beats consensus, share buybacks ahead

(CercleFinance.com) - On Friday, IAG announced better-than-expected Q3 earnings, thanks to solid demand in its core markets, a performance that will enable it to launch a share buyback program.


Operating profit at the holding company for the airlines Aer Lingus, British Airways, Iberia, Level and Vueling rose by 15.4% to E2.01bn, beating the consensus of E1.8bn.

This result corresponds to an operating margin of 21.6%, an increase of 1.4 percentage points.

The group, whose revenues rose by 7.9% to E9.33bn, added that it expected a "solid financial performance" by the end of the year.

IAG has also launched a E350m share buyback program to demonstrate its "confidence" in its strategy and business model, as well as in its long-term business prospects.

On the London Stock Exchange, investors hailed the numbers - IAG shares took off 6% in morning trading, flying over the entire European airline and tourism sector (+0.7%).


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