IAG to buyback shares following strong third-quarter

International Consolidated Airlines Group SA (IAG) announced on Friday a €350 million share buyback program, following strong growth in the third quarter.

IAG to buyback shares following strong third-quarter

The FTSE 100-listed parent company of British Airways and Iberia reported a 7.9% increase in third-quarter revenue, reaching €9.33 billion compared to €8.65 billion in the same period last year. This growth was fueled by sustained demand across key markets, which supported a 1.2% rise in passenger unit revenue. Pretax profit also saw a significant boost, rising 21% to €1.91 billion from €1.58 billion year-on-year. IAG attributed this improved profitability to strong investment, a robust balance sheet, and substantial free cash flow generation. For the year to date, IAG's revenue increased by 8.1% to €24.05 billion from €22.23 billion, while pretax profit climbed 13% to €2.96 billion from €2.62 billion. The company anticipates its strong financial performance to continue through the end of the year.

New buyback plan

In addition to its impressive results, IAG announced the €350 million share buyback initiative as a means of returning excess capital to shareholders. This program reflects the company’s confidence in its strategic direction and long-term prospects, aligning with its commitment to sustainable shareholder returns. The buyback will be carried out between November and February, with €262 million allocated to market share purchases and €88 million earmarked for share purchases from its 25% shareholder, Qatar Airways Group QCSC. Chief Executive Luis Gallego commented, "We achieved a very strong financial performance in the third quarter of 2024, with a 15% increase in operating profit compared to last year, enhancing our margin to 22%. This success underscores the effectiveness of our strategy and group-wide transformation. "Demand remains robust across all our airlines, and we are optimistic about delivering a strong financial performance in the final quarter of 2024. We remain committed to providing sustainable returns for our shareholders."