British Airways owner International Consolidated Airlines Group SA (LSE:IAG) today delivered a record set of full-year numbers and unveiled a fresh €1.5bn share buyback, prompting Panmure Gordon to reiterate a bullish stance, even as UBS kept its Sell rating and argued the capital return was more “in line” than a true upside surprise.
In London, the immediate view was evident, with the share down 33.4p or 7.3% to 423.5p on Friday.
Panmure highlighted FY operating profit of €5,024m, representing a 15.1% operating margin and 13% year-on-year growth, broadly matching consensus around €5,008m. The broker noted that IAG achieved record profit, margin and ROIC and has surpassed its medium-term through-cycle targets, with profit growth aided by capacity expansion and lower fuel costs.
The buyback remains a central plank of the investor pitch, according to the broker. IAG plans to execute €1.5bn over the next 12 months, with the first €500m set to be completed by the end of May.
Panmure also pointed to improving unit revenue trends in the fourth quarter, alongside a “positive” management outlook, adding it does not expect consensus forecasts to shift materially.
UBS, however, framed the same print more cautiously. It questioned whether the package is sufficient to move sceptical shareholders.
The Swiss bank also laid out divisional profitability across the group - including British Airways, Iberia, Aer Lingus, Vueling and IAG Loyalty - alongside reduced net debt and solid free cash flow, while noting guidance for modest capacity growth in 2026 and continued cost discipline.