IAG Announces €1bn Buyback, Reports €4.4bn Profit

The British Airways group, IAG, has announced a €1 billion share buyback following a significant financial turnaround marked by a 27% increase in annual operating profit, totaling €4.44 billion, surpassing analyst expectations of €4.08 billion. This decision comes after a strong Christmas trading quarter where profits nearly doubled to €961 million. The company's revenues for 2024 exceeded forecasts, driven by robust demand for its long-haul routes, particularly across the North Atlantic, contrasting with weaker performances by European short-haul airlines like Ryanair and easyJet. IAG's share price has significantly risen, reflecting renewed investor confidence. The company is also distributing €435 million in dividends, returning a total of €1.435 billion to shareholders. IAG's CEO, Luis Gallego, expressed confidence in the group's ability to deliver strong margins and returns amidst continued consumer demand.