The International Airlines Group (IAG) has launched a €350 million share buyback program that will begin on November 11, 2024 and run until February 28, 2025. As part of the program, Qatar Airways, which currently holds around 25,1 percent of IAG, will sell shares worth €88 million to banks Goldman Sachs and Morgan Stanley. These banks have been commissioned by IAG to carry out the purchases in both the UK and Spanish markets.
With this share buyback, IAG plans to buy back a total of up to 319,4 million of its own ordinary shares, which corresponds to approximately 6,4 percent of the company's share capital. The acquired shares are to be cancelled, subject to shareholder approval, while Qatar Airways intends to keep its stake in IAG stable.
IAG, which owns airlines such as British Airways, Iberia and Vueling, is introducing the buyback program due in part to strong business results: In the third quarter of 2024, an operating profit of two billion euros was reported, an increase of 15 percent over the previous year. IAG CEO Luis Gallego attributes this increase to the focus on the core markets in Europe and the transatlantic region, while Asia is currently not a priority due to the Russian airspace ban and competition from Chinese airlines.
Gallego stressed confidence in IAG's strategy and said the buyback program is designed to secure long-term shareholder returns. The company's strong financial position is to be further consolidated through the targeted use of funds.
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