BRITISH Airways owner IAG has pledged to reinstate its dividend for the first time since the pandemic. This comes as the post-pandemic boom in travel refuses to let up.

In a statement, the airline conglomerate said it was committed to dividends once its balance sheet and future investment plans are secured.

Outlining its medium-term targets ahead of a capital markets event, the IAG said it expects operating margins of between 12 to 15 per cent and maintained its outlook for the fiscal 2023 year.

Chief executive officer Luis Gallego said: "Our transformation and investment plans will drive a step change across our businesses, delivering efficiencies and a market-leading customer experience. Executing our strategy will enable us to deliver sustainable growth and returns for our shareholders."

It marks the latest evidence that soaring pent-up demand for travel is not slowing, despite concerns of a cooldown over the typically quieter autumnal months.

IAG reported record-level third-quarter profits in its latest results in October, amid widespread disruption across the UK and European airspace. Despite the positive update, IAG's shares closed down 4. 98 per cent, following a trend across the sector as investors demand near-perfect results amid concerns over jet fuel costs and fresh conflict in the Middle East.

(c) 2023 City A.M., source Newspaper