IAG in profit beat, €1bn buyback on strong leisure travel

(Sharecast News) - British Airways owner IAG on Friday reported a better-than-expected jump in annual profits after doubling earnings in the final quarter, driven by "robust" leisure travel and said it planned to return a further €1bn to shareholders. Adjusted operating profit rose 26% to €4.4bn, beating estimates of €4.08bn.

"We have seen ongoing strong demand for travel throughout 2024 and now into 2025, particularly across our core markets. Leisure travel remains robust as a major priority for households and in recent years we have seen this boosted by a shift as customers value experiences over material purchases," the company, which also owns Aer Lingus, Iberia and Vueling.

"In addition, in the 'visiting friends and relatives' segment, globalisation has created resilient, reliable demand to both ends of the route network. Corporate travel increased through the year, although we estimate that it will not fully recover to pre-Covid 19 levels, particularly for short duration and short-haul trips."

Reporting by Frank Prenesti for Sharecast.com