International Consolidated Airlines Group (IAG) Capital Markets Day 2023 set out its medium term targets:
- an operating margin of 12-15pc,
- return on invested capital of 13-16pc,
- leverage (net debt/EBITDA) of less than 1.8x over the cycle,
- a commitment to dividends once their balance sheet and investment plans are secure.
An IAG statement said it aims to transform the organisation to achieve sustainable growth, world-class margins, and maximise long-term shareholder returns.
IAG plans to drive a step change across their businesses by focusing on efficiencies, market-leading customer experience, and investment plans. They aim to extend their core leadership positions in the North Atlantic and South Atlantic regions and leverage their loyalty business for capital-light growth.
Sustainability and Shareholder Returns: IAG emphasizes their continued investment in sustainability as a long-term sector value driver. They aim to maximise total shareholder returns through earnings growth, ordinary dividends, and additional shareholder returns, all supported by a strong balance sheet.
Presentations on the IAG website www.iairgroup.com
