International Consolidated Airlines Group PLC on Friday hailed the success of its transformation programme after boosting shareholder returns and reporting higher sales and profit in 2024.

The British Airways owner said operating profit before exceptional items more than doubled to €1.12 billion in the fourth quarter from €502 million, beating consensus of €754 million. Final quarter revenue rose 11% to €8.05 billion from €7.22 billion.

Passenger revenue per available seat kilometre rose 6.0% to 8.26 euro cents in the quarter from 7.79 cents while non-fuel costs per ASK increased 4.8% to 6.15 cents from 5.87 cents.

For 2024 as a whole, pretax profit rose 17% at €3.56 billion from €3.06 billion. Operating profit before exceptional items increased by 27% to €4.44 billion from €3.51 billion, beating the company-compiled consensus of €4.08 billion.

Revenue in 2024 amounted to €32.10 billion, rising 9.0% from €29.45 billion.

In response, shares in IAG rose 4.9% to 355.20 pence each in London on Friday morning. The stock was the top performer in the FTSE 100 in 2024.

Passenger revenue per available seat kilometre rose 3.1% to 8.24 euro cents in 2024 from 7.99 cents in 2023, while non-fuel costs per ASK increased 2.6% to 5.84 cents from 5.69 cents.

‘These results highlight the quality of our businesses and effectiveness of our strategy, underpinned by the successful execution of our transformation programme across the group. We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago,’ Chief Executive Officer Luis Gallego said.

Passenger revenue increased 9.5% to €2.46 billion in 2024, ahead of the increase in passenger capacity of 6.2%, driven by higher yields and higher load factors than in 2023. The growth in passenger revenue reflected the reopening of markets and strong leisure demand, together with increases in ticket prices to reflect inflation, IAG said.

The recovery in corporate travel was slower than that of leisure travel, with the group‘s premium leisure segment continuing to perform strongly, it added.

Passenger unit revenue per ASK for the year was 3.1% higher than in 2023.

Cargo revenue rose 6.7% to €1.23 billion in 2024 than in 2023, while ’Other Revenue’, which includes parts of IAG Loyalty, maintenance and repair revenue and BA Holidays, rose 4.2% to €2.59 billion.

Total operating expenditure rose 7.2% to €27.82 billion in 2024 from €25.95 billion in 2023 reflecting higher volume of flights and passenger numbers and after adverse foreign currency

movements of €326 million.

The firm, which also owns Aer Lingus, Iberia and Vueling, proposed a €0.06 per share final dividend.

It takes its annual dividend to €0.09. IAG’s €0.03 interim dividend was its first since 2019.

In addition, it announced a €1.00 billion share buyback, returning excess capital to shareholders over the next 12 months. It had announced a €350 million buyback back in November. The buyback beat the €332 million consensus.

Looking to 2025, it expects to deliver ‘sustainable earnings per share growth’. Its basic EPS in 2024 rose 3.5% to 55.7 cents, from 53.8 cents.

IAG said it is confident of delivering world-class margins and returns as strong customer demand continues. It expects non-fuel unit cost trends in 2025 to be similar to 2024, excluding adverse foreign exchange impacts, significant free cash flow whilst investing in the business and a sustainable ordinary dividend.

‘We are also committed to returning excess cash to shareholders if no inorganic opportunities exist,’ IAG added.

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