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
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.