IAG, the all-powerful aeronautical company that is the parent company of Iberia – and British Airways, Vueling, Aer Lingus and LEVEL – continues on the path of good results that it already obtained in 2023. As reported today by the aeronautical holding company to the National Commission of Stock Market (CNMV), obtained a profit after taxes of 2,340 million euros between January and September 2024, 8.8% more than in the same period of the previous year.
We must remember, last year was historic, with a profit after taxes of 2,655 million euros, multiplying the results of 2022 by six. Of course, this is explained by the improvement in capacity that followed, among other things, recovery after Covid.
In turn, profit before taxes reached 2,955 million euros, 13% more, while operating profit rose 10.5%, to 3,322 million euros.
In addition, the group explained, the operated passenger capacity, measured in offered seat kilometers (AKO), increased by 6.9% compared to the same period in 2023, and Billing, for its part, grew by 8.2% and reached 24,053 million euros. Total operating expenses were 7.8% higher than the previous year, with a total amount of 20,731 million euros.
Announces a share buyback program
Coinciding with this announcement, the company has launched a share buyback program for an amount of 350 million euros with the aim of reducing its share capital. It must be remembered, share buybacks are operations in which a company acquires its own shares to later remove them from the market.
As reported by IAG to the National Securities Market Commission (CNMV), Goldman Sachs Bank Europe and Morgan Stanley Europe will execute the program in consecutive tranches, acting on behalf of IAG and making all trading decisions independently based on some parameters already defined.
There will be no changes, because Qatar Airways Group, the company’s largest shareholder, will maintain its position since it has agreed to participate in the program in proportion to its current participation, which is 25.143%.
To do this, it has committed not to sell IAG shares on the market during the program, but rather to offer the banks a number of shares proportional to the number of shares purchased on the market in each session and at a price per share equivalent to the average price weighted by the volume at which they have traded them that day.
The program will begin on November 11, 2024 and will end before February 28, 2025. It is intended to acquire up to 319,447,282 shares, representing 6.426% of the company’s share capital.
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