IAG to pay €0.09 full-year dividend, plans €1bn buyback

Published 28/02/2025, 08:12
© Reuters.

LONDON - International Consolidated Airlines Group (LON:ICAG) S.A. (IAG) has announced its proposal for a final dividend of €0.06 per share for the financial year 2024, subject to shareholder approval at the upcoming Annual General Meeting. This final dividend, combined with the interim dividend paid in September 2024, will bring the total dividend for the year to €0.09 per share, amounting to €435 million based on the company’s issued share capital.

The final dividend is expected to be paid on June 30, 2025, to shareholders who are on the register by June 27, 2025. It will be subject to a 19% withholding tax, resulting in a net dividend of €0.0486 per share.

In addition to the dividend, IAG has revealed plans for a share buyback programme of up to €1,000 million to be executed over the next 12 months. This move reflects the company’s confidence in its business strategy and long-term prospects, underpinned by a strong financial performance, including growth in margins and significant free cash flow.

IAG’s capital allocation framework prioritizes maintaining a robust balance sheet and investing in the business. The company reported a leverage ratio of 1.1x at the end of 2024, a substantial improvement from 1.7x at the end of 2023 and 3.1x at the end of 2022. Both Moody’s and S&P have upgraded IAG to investment grade status within the year.

The airline group has also taken steps to strengthen its financial position by completing a liability management exercise early in 2025, reducing its gross debt by repurchasing €577 million across its 2027 and 2029 bonds. An upcoming bond maturity in March 2025 and an increase in unencumbered aircraft will further reduce gross debt.

Investments in customer propositions, including IT, totaled €781 million in capital expenditure in 2024, with an additional €2,035 million spent on fleet enhancements, resulting in 19 new aircraft deliveries.

The announcement of the final dividend and buyback programme follows the completion of a €350 million share purchase programme initiated on November 8, 2024, which concluded today as scheduled. Further details on the new buyback programme will be disclosed in the near future, as indicated by Nicholas Cadbury, IAG’s Chief Financial and Sustainability Officer.

The information in this article is based on a press release statement from International Consolidated Airlines Group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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