IAG reiterates commitment to resuming dividends

The company, which hasn't paid a dividend since 2019, said it is targeting an operating margin of between 12% and 15% over the medium term, compared with 13.5% over the first nine months of 2023.

At a capital markets event for institutional investors and analysts, IAG is expected to keep leverage (measured by net debt-to-EBITDA) to "less than 1.8x", compared with a ratio of 3.1 in 2022.

The company also said it was committed to "maximise total shareholder returns from earnings growth, an ordinary dividend and additional shareholder returns, underpinned by a strong balance sheet".

"We are focused on extending our core leadership positions in the North Atlantic and South Atlantic through developing our hubs, while enabling IAG Loyalty to reach its full potential within the group," said chief executive Luis Gallego.

"Our transformation and investment plans will drive a step change across our businesses, delivering efficiencies and a market-leading customer experience. Executing our strategy will enable us to deliver sustainable growth and returns for our shareholders."

The stock was down 0.2% at 163.35p by 0954 GMT.