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International Consolidated Airlines Group SA on Friday announced a €350 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 €9.33 billion from €8.65 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 €1.91 billion from €1.58 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 €24.05 billion to €22.23 billion and pretax profit rose 13% to €2.96 billion from €2.62 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 €350 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 €350 million through a combination of €262 million in market share purchases and €88 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’ Copyright 2024 Alliance News Ltd. All Rights Reserved
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