International Consolidated Airlines Group posted a rise in earnings and said that it planned to buy back up to 1 billion euros ($1.04 billion) in shares within the next 12 months. The following is a roundup of analysts' comments:

IAG Benefiting From Cheaper Fuel, Resilient Demand

0850 GMT - IAG is benefiting from cheaper fuel prices and resilient demand for travel, which helped boost its operating profit and its share price to five-year highs, Begbies Traynor partner Julie Palmer says in a note to clients. IAG appears to be defying the gloom weighing on consumer-facing sectors in the U.K., the analyst says. The owner of British Airways, Iberia and Vueling posted an operating profit before exceptional items of 4.44 billion euros last year. "Despite current successes, IAG must remain wary of the potential headwinds of a volatile geopolitical climate, the possible impact of tariffs and a highly competitive travel market," the analyst says. IAG shares trade up 3.9% at 351.90 pence. (pierre.bertrand@wsj.com)

IAG Looks Confident

0914 GMT - British Airways owner IAG appears to be flying high and with confidence, Interactive Investor's Richard Hunter says in a note to clients. The airline group's buyback of up to 1 billion euros comes as full-year cash flow surged to 3.56 billion euros from 1.32 billion euros. Revenue growth was supported by a 9.5% bump in passenger sales and a 6.7% rise in cargo sales. "Despite the obvious economic challenges which many consumers are currently facing, the annual holiday seems to have become shielded from day-to-day financial constraint," Hunter says. Shares trade up 4.5% at 354.0 pence. (pierre.bertrand@wsj.com)

IAG Expected to Post Further Growth

0928 GMT - IAG's operating profit before exceptional items exceeded analysts' expectations and is expected to grow further this year, RBC Capital Markets analyst Ruairi Cullinane says in a research note. The metric, which strips out exceptional and other one-off items, rose 27% to 4.44 billion euros compared with expectations of 4.08 billion euros. The airline group has a stronger outlook than it is given credit for considering its supportive capacity backdrop on the Atlantic route, pricing potential from British Airways product measures and the possibility for further business travel recovery, RBC says. Shares trade up 5% at 355.70 pence. (pierre.bertrand@wsj.com)

IAG's Profitability Has Room to Grow

1024 GMT - IAG's margins are higher now than before the coronavirus pandemic and they can continue to grow as the airline group's long-haul capacity recovers, Jefferies analysts say in a research note. Its strong balance sheet also gives the British Airways owner the option to continue to add brands to its group, which also includes Iberia and Vueling, or to grow dividends, Jefferies says. Company guidance of around 3% higher passenger-carrying capacity this year with continued strong customer demand implies EBIT consensus at 4.6 billion euros. Shares trade 3.6% higher at 351.0 pence. (pierre.bertrand@wsj.com)

IAG's Fourth Quarter Marked by Passenger Revenue Growth

1116 GMT - IAG's fourth-quarter performance was driven by stronger-than-expected revenue, somewhat offset by higher costs, Goodbody analyst Dudley Shanley says in a research note. Quarterly revenue growth of 11% to 8.05 billion euros compares with Goodbody's forecast of 7.60 billion euros, with the beat largely driven by passenger revenues, which were 4% higher than forecast, the analyst says. "Despite the very strong run the stock had last year and at the start of this year, we think the market will welcome the comments about sustainable earnings growth and the new EUR1B buyback," Shanley says. IAG shares trade up 5% at 3.55 pounds. (pierre.bertrand@wsj.com)

(END) Dow Jones Newswires

February 28, 2025 06:34 ET (11:34 GMT)

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