IAG Shares Slump Despite Promise to Resume Dividend Payout
- Returning money to shareholders key priority, says CFO
- Shares down as much as 4%, payout pledged in mid to long-term
A passenger airplane, operated by British Airways, at London Heathrow Airport in London, UK.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
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. Still, that wasn’t good enough for shareholders.
Shares in the airline group slumped as the announcement lacked concrete timing on when payouts will resume, with IAG saying it would reinstate dividends once its balance sheet and investment plans were secure, according to a stock exchange filing.