IAG Reports Strong Q4 Profit Growth with Dividend Proposal

IAG announces a significant fourth-quarter profit increase of 38%, demonstrating strong operational growth. The airline also proposes a dividend, a notable shift from last year. Investors may view this as a positive sign for future earnings.

Date: 28-02-2025

AI Rating: 7

Earnings Performance: IAG reported a fourth-quarter profit before tax increase of 38%, from 441 million euros to 608 million euros. However, on an after-tax basis, profit fell by 22.2% to 392 million euros, down from 504 million euros last year. Adjusted Figures: The adjusted profit before tax rose to 768 million euros from 441 million euros, indicating strong operational improvements. Adjusted profit after tax also saw an increase to 552 million euros from 504 million euros, highlighting effective cost management strategies. Operating Profit: Operating profit significantly increased by 91.4% to reach 961 million euros, which is an essential indicator of enhanced operational efficiency. Revenue Growth: Total revenue grew by 11.4% year-over-year to 8.05 billion euros compared to 7.22 billion euros last year. This growth signifies a recovering and expanding business. Capacity Metrics: Available seat kilometres (ASK) increased by 4.3% to 84.32 billion, while passenger revenue per ASK improved by 6% to 8.26 euro cents, indicating a strengthening demand in airline services. Dividend Proposal: IAG is proposing a final dividend of 0.06 euros per share, setting a full-year 2024 dividend at 0.09 euros per share. This contrasts sharply with the previous year when no dividends were paid or proposed, reflecting improved financial health. Future Outlook: The company aims to achieve sustainable earnings per share growth and confidence in delivering high margins and returns illustrates a positive outlook. This aligns with the overall strong performance metrics, signaling investor confidence.

Stocks: IAG.L