Why did the iag share price slip today?

Shares eased as management paired a results beat, strong bookings, and cash guidance with a heavier multi‑year capex plan. Investors welcomed the €1.5bn buyback and an 8.9% dividend rise, but higher spending raises near‑term cash needs. The balance between returns and investment drove a cautious reaction.

How big is the IAG buyback and who benefits?

The board approved a €1.5bn IAG buyback. Share repurchases reduce the share count, which can lift earnings per share and support valuation. Long‑term holders typically benefit if buybacks occur at attractive prices and free cash flow comfortably funds both investment and shareholder distributions.

What does guidance imply for IAG dividend 2026?

Management guided 2026 free cash flow above €3bn, which supports confidence in distributions. While the dividend rose 8.9% today, future payouts depend on cash generation, capex, and the balance sheet. For UK investors, remember dividends are paid in euros, so sterling receipts vary with FX.

How important is British Airways profit to IAG’s outlook?

British Airways profit is a core driver for group margins, brand strength, and cash flow. BA signalled ambitions for record 2025 profit and product upgrades, which should aid yields and loyalty. Strong execution at BA can offset softness elsewhere, supporting group returns and investor confidence.

Global Market Insights

IAG.L Stock Today: Buyback, Dividend Lift, Capex Weighs – February 28

ByDanny Kontos February 28, 2026

The iag share price eased today after International Consolidated Airlines Group IAG.L beat full‑year expectations, announced a €1.5bn buyback, and lifted its dividend by 8.9%. Management guided 2026 free cash flow to above €3bn with strong Q1 bookings, yet a heavier multi‑year capex plan cooled enthusiasm. For UK investors, the iag share price reaction reflects a classic trade‑off: stronger cash generation and returns versus higher aircraft, cabin, and IT investment. We break down what matters next for valuation, income, and demand trends.