IAG: solid 2024 results with share buybacks ahead

(CercleFinance.com) - On Friday, IAG published higher than expected annual results for 2024, which will enable it to step up its cash redistributions to shareholders.


Last year the airline, which owns British Airways, Iberia amongst other airlines, generated operating profit before exceptional items of E4.44bn, up 27%.

In comparison, analysts were expecting earnings of around E4bn.

The group, whose sales rose 9% in 2024, said that it generated FCF of E3.55bn, even after spending E2.82bn on investments to develop its activities.

IAG did not give a precise forecast for 2025, but said that it is "confident" in its ability to generate "world-class" margins and profitability, given the current strength of passenger demand.

Following the implementation of a E350m share buyback program last November, the company plans to launch a new program - this time for E1bn - to be carried out over the next 12 months.

After paying an interim dividend of E0.03 at the time of its interim results, on Friday IAG announced the payment of an additional E0.06 per share, bringing the final coupon to E0.09, i.e. a total amount of E435m.

This generosity provided considerable support for the share price on Friday morning on the London Stock Exchange, where it climbed by around 4%, topping a FTSE 100 index down 0.2%.

The share price, up 19% since the start of 2025, has really taken to the skies - up 130% over the past 12 months.


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