British Airways owner IAG SA dangled the prospect of resuming dividend payments for the first time after the Covid-19 pandemic as soaring travel demand helps repair its balance sheet.
The airline group, which also owns Spain’s Iberia alongside other carriers, said it would reinstate the payment of a dividend once its balance sheet and investment plans were secure, according to stock exchange filing ahead of a meeting with investors on Tuesday.
IAG last paid out a dividend in 2019, and scrapped a planned payout in 2020 at the start of the Covid-19 pandemic. Earlier this month, Ryanair Holdings Plc said it will pay a dividend of €400 million ($430 million) and plans to hand over about a quarter of annual profit to shareholders.
IAG also set medium-term targets of an operating margin of 12%-15% and a return on invested capital of 13%-16%.
