IAG's stock price plummets despite gaining 15% more

BarcelonaShares in IAG, the parent company of airlines such as Iberia, British Airways, and Vueling, fell more than 11% on Friday despite the group's profits increasing by 15% in the first nine months of the year, reaching €2.703 billion. The holding company also announced new shareholder payouts. In fact, it will distribute a gross dividend of 4.8 cents per share on December 1st. Despite the released data, IAG shares were among the worst performers on the market. The session began with a 6% drop, which later widened. The group's CEO, Luis Gallego, stated during the press conference presenting the third-quarter results that the stock remains "undervalued" and attributed this to market movements by "investors with short-term interests." IAG has expressed its conviction that the shares will appreciate and noted that, so far this year, the stock has increased by 67%. The group, which has benefited from growth in travel demand, achieved total revenues of €25.234 billion through September, 4.9% higher than in the first nine months of 2024, while operating profit was €3.931 billion, 18.3% higher. The group's net debt was reduced to €6.009 billion from €7.517 billion in the same period of 2024, a debt ratio of 8 times EBITDA. IAG maintains its outlook for the full year unchanged and expects to close 2025 with further revenue and margin growth. Travel demand remains robust, especially in the premium segment and on transatlantic routes, where IAG continues to strengthen its position. For the full year, the company forecasts a 2.5% increase in capacity, accompanied by a 3% increase in non-fuel unit costs, in line with expectations. It also estimates fuel expenditure of approximately €7.1 billion and annual capital expenditure (capex) of around €3.7 billion.