Sparks

IAG has delivered an impressive set of results for 2024, with a 26.7% increase in operating profit before exceptional items to €4,443 million and a strengthened operating margin of 13.8%. This performance is well above consensus expectations (company-compiled consensus of €3,963-4,374m) and reflects the resilience of demand for international travel and the success of the group’s transformation strategy, particularly in its core transatlantic and Latin American markets.

The group’s commitment to returning value to shareholders is clear, with a total dividend of €435 million and a planned return of up to €1 billion in excess capital. British Airways’ £7 billion transformation is bearing fruit, while Iberia and Aer Lingus continue to capitalise on strong demand. However, ongoing supply chain challenges and aircraft delivery delays remain a watchpoint for growth.

The company is expecting another good year in FY25 with significant free cash flow and strong returns to shareholders.