International Consolidated Airlines (IAG) presents this Tuesday the strategic priorities and business perspectives for the medium term of the airline holding company, during its Capital Markets Day for institutional investors and analysts at its corporate headquarters in London, where the company’s executive team will speak about your goals and expectations for the coming months. The conglomerate made up of British Airways (BA), Iberia, Vueling, Aer Lingus and Level, has set itself the objective of obtaining more than 1.5 billion euros of operating profit from Spanish businesses.
The National Securities Commission (CNMV) reported this morning that the event held by IAG will discuss the company’s transformation strategies, with which it hopes to “obtain sustainable growth, achieve one of the best margins in the industry and maximize long-term total shareholder return.”
Among other objectives, the company expects to achieve an operating margin of between 12% and 15%, in addition to achieving a return on invested capital of between 13% and 16%. The holding company also expects to be able to maintain leverage (net debt/EBITDA) of less than 1.8 times throughout the cycle.
Seeks to achieve sustainable growth
The company confirms its commitment to distributing dividends to its shareholders “once our balance sheet reaches a robust position and our investment plans are advanced.” IAG’s outlook for the full year 2023 remains unchanged. During the event no comments will be made about the current and future situation of the business.
“Our transformation and investment plans will drive profound change across all of our businesses, increasing our efficiency and providing a market-leading customer experience. The execution of our strategy will allow us to deliver sustainable growth and profitability to our shareholders,” said the CEO. CEO of IAG, Luis Gallego.
The CEO of the aeronautical holding company led by Iberia and British Airways, and the financial director, Nicholas Cadbury, will be accompanied by members of the IAG Management Committee, as well as other executives from the group’s operating companies. The management team will address key aspects of the business such as IAG’s positioning in the world’s most potential aviation markets, the strategy to achieve sustainable growth through its trademarks, its customer base and its disciplined approach to the allocation of capital.
The growth of non-capital-intensive activities, such as agreements with other airlines in high-growth markets, will also be analyzed, as well as the transformation of their businesses “to improve customer satisfaction, sustainable overall operational benefits.” The objective is to obtain more than 1,500 million euros of operating profit from Spanish companies, as explained in the note issued to the CNMV.
During the event, investment plans in sustainability as a driver of long-term value creation in the sector will also be put on the table, as well as those planned to maximize total return for the shareholder by increasing profits, an ordinary dividend . and additional returns for the shareholder, “backed by a solid balance sheet.”
