British Airways owner IAG (LSE: IAG) has today pledged to reinstate its dividend for the first time since the pandemic, as the post-pandemic travel boom refuses to slow.
The airline conglomerate said it is committed to dividends once finances and investment plans are secured, outlining medium-term goals including 12-15% margins.
The update marks the latest sign that pent-up demand remains strong, despite autumnal slowdown concerns.
IAG reported record Q3 profits amid disruption, while Ryanair and easyJet also plan payouts off the back of the travel bonanza.
But IAG shares have fallen 4% today as investors demand perfection amid fuel cost and conflict fears.
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Speakers will outline €1.5bn Spanish profit goals and loyalty growth at today’s capital markets event.
IAG shares are up 21% year-to-date but slightly down annually.
RBC Capital raised its target to 200p, noting over 20% upside potential, but believes rivals may offer better opportunities.
Its 2023 profit forecast of €3.51bn exceeds consensus of €3.37bn.
