International Airlines Group is moving towards paying its first dividend since its creation through the merger of British Airways and Iberia in 2011.
The airlines giant, which has also taken over BMI and Spanish budget carrier Vueling since its formation, is expected to set out a road map towards its first payout to shareholders at a capital markets day on November 7.
Analysts believe shareholders will receive their first payment at the end of IAG’s 2015 financial year at the latest, as turnaround at Iberia drives an improvement in profits, The Telegraph reported.
IAG revealed last month that Iberia had finally returned to the black following two years of restructuring, which has claimed more than 4,500 jobs at the Spanish flag carrier.
IAG posted a €96 million (£75 million) pre-tax profit for the six months to June 30, up from a €503 million loss at the same point the previous year, after Iberia made an operating profit of €16 million.
The company said it is on track to improve operating profit this year by “at least” €500 million, from €770 million in 2013.
EasyJet recently raised the proportion of profits after tax that it will pay shareholders through an ordinary dividend, from one third to 40%, at its own capital markets day.
But analysts believe IAG’s dividend policy will involve a far lower percentage, as payments for new aircraft accelerate.
An IAG spokesman told the newspaper: “It is our stated objective to get the business to a position by which we can reintroduce and sustain a dividend payment.”