8th Nov 2024 08:44
(Alliance News) - International Consolidated Airlines Group SA on Friday announced a EUR350 million share buyback programme amid strong third quarter-growth.
The FTSE-100 listed owner of British Airways and Iberia said its third-quarter revenue grew 7.9% to EUR9.33 billion from EUR8.65 billion the prior year, driven by a continuation of strength in demand across its core markets which supported a 1.2% increase in passenger unit revenue.
Pretax profit also rose, up 21% over the period to EUR1.91 billion from EUR1.58 billion year-on-year, with IAG noting its increased profitability is underpinning investment, an increasingly strong balance sheet and significant free cash flow generation.
Year-to-date, revenue for the firm was up 8.1% on-year to EUR24.05 billion to EUR22.23 billion and pretax profit rose 13% to EUR2.96 billion from EUR2.62 billion.
IAG expects its strong financial performance to continue for the rest of the year.
IAG shares were up 6.1% at 232.20 pence on Friday morning in London.
Alongside its robust performance, IAG announced a EUR350 million share buyback programme to return excess capital to shareholders. IAG said this reflects its confidence in its strategy and long-term outlook, and aligns with its commitment to sustainable shareholder returns.
The buyback programme will take place between November and February and will be executed for the aggregate amount of EUR350 million through a combination of EUR262 million in market share purchases and EUR88 million in purchases from 25% shareholder Qatar Airways Group QCSC.
IAG Chief Executive Luis Gallego said: "We achieved a very strong financial performance in third-quarter 2024, with a 15% increase in operating profit compared to the same period last year and improving our margin to 22%. This is due to the effectiveness of our strategy and group-wide transformation.
"We are also delivering on our commitment to provide sustainable returns for shareholders.
"Demand remains strong across our airlines, and we expect a good final quarter of 2024 financially"
By Christopher Ward, Alliance News reporter
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