IAG launches its final 500 million euro share buyback
International Airlines Group has announced the final 500 million euro tranche of its previously planned capital return. Purchases start on 5 October and are expected to finish by 26 February next year. Qatar Airways will sell shares proportionately to preserve its voting stake. The acquired shares are intended for cancellation under shareholder-approved plans, with purchases subject to market-price and volume limits.
Economics & Markets··Midday
The final tranche completes February’s capital-return plan
International Consolidated Airlines Group (IAG), the airline holding company, announced a final 500 million euro share repurchase programme. It completes the 1.5 billion euro return of excess cash announced on 26 February. Purchases begin on 5 October and are expected to end by 26 February next year, subject to early termination provisions.[1], [2]
The second 500 million euro programme made its final purchase on 10 September. The new tranche uses authority granted by shareholders at the annual meeting on 18 June. Acquired shares will be held by IAG pending cancellation under the approved capital reduction.[1]
Qatar Airways will sell proportionately
Qatar Airways, an airline and IAG shareholder, agreed to participate in proportion to market purchases to preserve its 25.1434 per cent voting stake. It will sell shares to the executing banks each trading day at the volume-weighted average price of their market purchases, rather than selling in the market.[1]
The banks will then sell those shares to IAG. Approximately 374 million euros is allocated to market participants’ shares and 126 million euros to Qatar Airways shares. The voting-share level being preserved dates from before the recent buybacks that began in November 2024.[1]
Banks execute purchases within market limits
Morgan Stanley Europe and Goldman Sachs Bank Europe will execute successive portions independently within agreed parameters. Purchases can take place on London and Spanish exchanges. The ceiling is 210 million ordinary shares, about 4.55 per cent of issued capital. Daily volume is capped at 25 per cent of the relevant exchange’s average daily volume over the previous twenty trading days.[1]
