INTERNATIONAL CONSOLIDATED
AIRLINES GROUP, S.A.
Final Dividend and Share
Buyback Programme
INTERNATIONAL CONSOLIDATED AIRLINES
GROUP, S.A. ("IAG" or
the "Company") today
announces its decision to recommend to
shareholders a final dividend of €0.06 per share in respect of
2024. Together with the interim dividend paid in September 2024,
this brings the full year dividend to €0.09 per share, which
represents a total ordinary dividend of €435 million for the year
taking into account the Company's total issued share capital.
Subject to shareholder approval at IAG's Annual General Meeting,
the final dividend will be paid from 30 June 2025 to shareholders
on the register on 27 June 2025 (the dividend will be subject to a
19% withholding tax (€0.0114 per share), resulting in a net amount
per share of €0.0486).
IAG also today announces a
share buyback programme of up to €1,000 million to
be implemented within the next 12 months (the "Programme").
Together, these steps reflect our
continued confidence in the strategy and business model, as well as
the long-term prospects for the business.
Our strategy has delivered a strong
financial performance, including the margin growth and significant
free cash flow that are a fundamental part of our medium-term
targets.
The decision is based on IAG's
disciplined capital allocation framework that underpins the
delivery of sustainable shareholder returns over the long
term:
·
Our first priority is a strong balance sheet. In
2023 we set the target to be below 1.8x net leverage through the
cycle. In 2024 we ended the year with leverage at 1.1x, down from
1.7x at the end of 2023 and 3.1x at the end of 2022. We are
investment grade with Moody's and S&P, both of which upgraded
IAG during the year.
·
We are continuing to reinforce our financial
strength. In early 2025 we completed a liability management
exercise to reduce our gross debt by buying back €577 million
across our 2027 and 2029 IAG bonds. Gross debt will reduce further
as an IAG €500 million bond matures in March 2025 and as we
increase the level of unencumbered aircraft. This will help us with
our target to reduce gross leverage over time (2.5x at 31 December
2024).
·
Our second capital allocation priority is to
invest in the business. In 2024 we invested €781 million of capital
expenditure in our customer propositions, including IT. We spent
€2,035 million on fleet in 2024, with 19 new aircraft
delivered.
·
We are committed to creating sustainable value for
our shareholders. First, we want to pay a sustainable ordinary
dividend to our shareholders through the cycle. We have proposed a
final dividend of €0.06 per share, bringing the total dividend for
Financial Year 2024 to €0.09 per share, representing €435
million.
·
We are also targeting to distribute excess cash
when net leverage is below 1.2x to 1.5x, if no inorganic
opportunities exist and with consideration to the outlook and
depending on future capital requirements and
commitments.
We are therefore now returning
excess cash to shareholders.
An announcement will be made in due
course with further details of the Programme.
The €350 million share purchase
programme announced by the Company on 8 November 2024 is scheduled
to complete today in accordance with its terms. A further
announcement confirming the completion will be made in due
course.
Nicholas
Cadbury
Chief
Financial and Sustainability Officer
28 February 2025
LEI: 959800TZHQRUSH1ESL13
This announcement contains inside
information and is disclosed in accordance with the Company's
obligations under the Market Abuse Regulation. The person
responsible for arranging the release of this announcement on
behalf of IAG is Nicholas Cadbury, Chief Financial and
Sustainability Officer.
