### IAG's Profits Surge Amidst Rising Passenger Demand and Falling Fuel Costs International Airlines Group (IAG), the parent company of British Airways, has reported a significant increase in profits for the previous year, driven by a combination of reduced fuel costs and a rise in passenger revenue. The airline industry is witnessing a rebound as travel demand continues to grow, particularly in the leisure sector, despite lingering challenges in corporate travel recovery. IAG's financial performance has exceeded market expectations, prompting plans for a substantial share buyback. ### Breakdown of IAG's Financial Performance 1. **Profit Growth**: - IAG reported a **27% increase** in annual operating profit, reaching **€4.3 billion** (£3.6 billion) for the year 2024, compared to €3.5 billion the previous year [https://www.standard.co.uk/business/business-news/british-airways-parent-company-records-surge-in-profits-b1213855.html]. 2. **Passenger Revenue**: - Passenger revenue rose by **3.1%**, reflecting a strong demand for air travel, particularly in transatlantic routes [https://www.thesun.co.uk/money/33625741/british-airways-iag-profits-soar]. 3. **Cost Management**: - The increase in profits was also attributed to effective cost management strategies implemented by IAG, which helped curb expenses while capitalizing on rising passenger numbers [https://www.reuters.com/business/aerospace-defense/british-airways-owner-iags-annual-earnings-beat-expectations-2025-02-28]. 4. **Share Buyback Announcement**: - Following the strong financial results, IAG announced a **€1 billion** ($1.04 billion) share buyback plan, signaling confidence in its ongoing profitability and commitment to returning value to shareholders [https://www.bloomberg.com/news/articles/2025-02-28/iag-sets-1-billion-stock-buyback-as-profit-beats-estimates]. ### Supporting Data and Evidence - **Operating Profit**: - 2024: **€4.3 billion** (up 22.1% from €3.5 billion in 2023) [https://www.thisismoney.co.uk/money/markets/article-14446245/BA-owners-profits-high-record-high-despite-delivery-delays.html]. - **Passenger Revenue Increase**: - **3.1%** rise in passenger revenue year-on-year [https://www.thesun.co.uk/money/33625741/british-airways-iag-profits-soar]. - **Shareholder Returns**: - Proposed dividend of **€0.09** per share, reflecting the company's robust financial health [https://www.cityam.com/iag-british-airways-owner-beats-expectations-as-profit-hits-3-6bn]. ### Conclusion: A Positive Outlook for IAG In summary, IAG's financial results for 2024 demonstrate a **strong recovery** in the airline sector, characterized by significant profit growth and increased passenger demand. The company's strategic focus on cost management and expansion in leisure travel has positioned it well for future success. Key takeaways include: 1. **Profit Surge**: IAG's operating profit rose by **27%**, reaching **€4.3 billion**. 2. **Increased Passenger Revenue**: A **3.1%** increase in passenger revenue indicates a rebound in travel demand. 3. **Shareholder Value**: The announcement of a **€1 billion** share buyback reflects confidence in sustained profitability. IAG's performance highlights the resilience of the airline industry as it navigates post-pandemic recovery, with a promising outlook for continued growth [https://www.travelandtourworld.com/news/article/international-airlines-group-reports-strong-net-profit-growth-as-2025-begins-driven-by-sustained-passenger-demand].