International Airlines Group (IAG) has taken a new step in its share buyback program, with a maximum limit of 500 million euros, after acquiring 5,920,278 shares between August 17 and 21, as reported to the National Securities Market Commission (CNMV).
These purchases were carried out through Goldman Sachs, both in the London and Madrid markets and through over-the-counter operations associated with the program.
Of the total shares acquired, 3,552,610 belong to the tranche denominated in pounds and 2,367,668 to the tranche denominated in euros. On the London Stock Exchange, purchase prices ranged between 4.168 and 4.461 pounds per share, while on the Madrid Stock Exchange they fluctuated between 4.871 and 5.216 euros.
The purchased shares will increase the company's treasury stock until their future amortization, which will result in a decrease in IAG's share capital.
A buyback program in its final phase
These acquisitions are part of the program announced by IAG on May 15 and activated on the 18th of that same month, with a maximum amount of 500 million euros.
The purpose is to subsequently amortize the repurchased shares and, in this way, reduce the share capital. The plan sets a deadline of September 30, 2026, unless there is an early termination, and contemplates the purchase of up to 300 million shares.
The program's scheme allows orders to be executed both on the London Stock Exchange and in the Spanish markets. IAG allocated up to 374.3 million euros to purchases from market participants and about 126 million euros to acquisitions from Qatar Airways.
For the implementation of the plan, IAG hired Morgan Stanley Europe and Goldman Sachs Bank Europe, which act in successive tranches and with autonomy in trading decisions, although always within the parameters set by the group.
The operation takes place after the presentation of results on July 31, when IAG reported a profit after taxes of 1,033 million euros in the first half, 20.6% lower than in the same period of the previous year, conditioned by the increase in fuel costs resulting from the military conflict in the Middle East, as notified this Friday to the CNMV.
Qatar Airways maintains its weight in the capital
Qatar Airways agreed to join the buyback program proportionally in order to maintain its total participation in IAG at the same level it had just before the launch of the latest buyback programs of the company --the first was launched in November 2024--, that is, 25.1434% of the voting rights of IAG.
The intervention of Qatar Airways in this mechanism seeks to prevent the decrease in the number of shares outstanding from increasing its relative percentage in the group's capital.
Closure of the previous program and new plan
The first buyback of 500 million euros included in this plan was completed in May, with the last purchase made on the 14th. Immediately after, IAG activated this second program for the same amount.
In the framework of that first tranche, IAG acquired more than 116.8 million ordinary shares, equivalent to approximately 2.53% of its share capital.
The purpose of this buyback program, which the parent company of Iberia, British Airways, Vueling, Aer Lingus, and Level communicated on February 27, was also the reduction of its share capital.
Consequently, the repurchased shares will be held in treasury until the shareholders approve the corresponding capital reduction at the annual general meeting of IAG.
The company announced in February that it would allocate 1.5 billion euros to share buybacks over a period of 12 months.