Stock Take

IAG shares dive 5% as it promises dividends will take off again

The parent company of Aer Lingus did its best to win over shareholders but the markets took a different view

Luis Gallego, chief executive of International Airlines Group: ‘Executing our strategy will enable us to deliver sustainable growth and returns for our shareholders.’ Picture: Getty

International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, and Vueling airlines, did its best to impress shareholders last week at its capital markets day.

Despite this, shares in IAG were down over 5 per cent last week, even with the company advising that it would return to paying dividends.

At its capital markets update last week IAG said it is targeting a medium-term operating profit margin of 12 to 15 per cent, a considerable expansion on the group’s margin of just over 9 per cent in the first half of this year.