MADRID, 28 (EUROPA PRESS) - IAG has announced a stock buyback program worth up to €1 billion, planned to be implemented over the next twelve months, alongside a proposed dividend payout of €0.06 per share, as reported to the Comisión Nacional del Mercado de Valores (CNMV) on Friday. Specifically, the dividend, which will account for 2024 and adds to the one distributed last September, results in a total of €0.09 per share and €435 million overall.
According to IAG, these two measures reflect its "permanent" confidence in the group's strategy and business model, as well as its long-term business outlook. The company explained this approach has led to solid financial performance and is underpinned by IAG's "robust capital allocation framework" aimed at achieving sustainable, long-term shareholder remuneration.
IAG's immediate priority now is to achieve a solid balance sheet. After aiming for leverage below 1.8 times in 2023, it finished 2024 at 1.1 times, indicating significant improvement. The company also highlighted its continued efforts to strengthen its financial solidity, noting it completed debt management exercises at the beginning of 2025, reducing gross debt by repurchasing €577 million of IAG bonds maturing in 2027 and 2029.
The gross debt is expected to decline even more as IAG will soon redeem another €500 million bond maturing in March 2025, coinciding with the increased number of debt-free aircraft. The company's secondary priority centers around investing back in the business. For 2024, IAG allocated €781 million for customer proposals and €2.035 billion for fleet, culminating with the delivery of 19 new aircraft.
Overall, IAG is committed to generating "sustainable value" for its shareholders, both through dividends and the stock buyback program. More details about this share repurchase will be published soon, and the previous buyback program of €350 million, announced on November 8, will conclude today.
The IAG airline's shares opened trading on Friday with over 4% gains, driven by the release of its financial results for 2024, which revealed net profits of €2.732 billion, up 2.9% from last year. At 9:15 AM, the group’s shares surged by 5.04%, reaching €4.295 per share and solidifying its position as the second-highest gainer on the IBEX 35, only behind Amadeus.
The announced dividend and stock repurchase are expected to reinforce investor confidence, reflecting trust in the group's solid financial foundation and growth strategy. The positive results stem from a "solid and sustained" demand for travel projected for both 2024 and 2025, particularly within its main markets—Americas and Europe—with leisure travel seeing the most significant resurgence.
Passenger revenues totaled €28.274 billion, marking a 9.5% increase, with load factors reaching 86.5%, which is 1.2 percentage points higher than the previous year. IAG's operating profit was reported at €4.283 billion, which is 22.1% more than 2023, and the operating margin (before exceptional items) increased by nearly two points to 13.8%.
The IAG group reduced its net debt by €1.728 billion to €7.517 billion, effectively lowering its net debt-to-EBITDA ratio by 0.6 points to 1.1. By year-end, liquidity stood at €13.362 billion, which is €1.738 billion more than recorded at the end of 2023.
Reflecting on operational efficiency improvements, the IAG group also noted respective punctuality gains; British Airways improved its on-time performance by 12.3 percentage points, and Aer Lingus by 6.9 percentage points, with Iberia and Vueling recognized as among the most punctual airlines globally.
IAG is planning to invest €3.7 billion this year, hinging on fleet deliveries, after investing €2.035 billion on aircraft purchases and adding 19 new units last year. The group indicates it anticipates a 3% capacity increase as demand continues to hold strong, estimating operational costs (excluding fuel) to maintain similar trends as seen previously.
Looking forward, IAG predicts the continued expansion of routes through Iberia using its new narrow-body long-haul A321XLR to North America, with increased frequencies to Buenos Aires and São Paulo, as well as Lima. Meanwhile, Vueling is set to receive new aircraft for deployment at Barcelona and domestic bases, enhancing new routes across several Italian destinations, Morocco, Montenegro, and Albania.
Lastly, Level, the low-cost airline based in Barcelona, will extend its seasonal route to Santiago, Chile, throughout the year.