On Friday, International Airlines Group (IAG) reported better-than-expected quarterly results and proposed to pay a dividend to its shareholders, announcements which enabled its shares to post the biggest rise in the FTSE 100 index.

Operating profit for the airline group, which includes British Airways, Iberia, Aer Lingus and Vueling, fell to 1.24 billion euros in the quarter just ended, compared with 1.25 billion euros a year earlier.

However, this figure exceeds the analysts' consensus of 1.08 billion euros.

In a press release, IAG explains that it benefited from strong passenger demand for the most attractive destinations in its core markets: the North Atlantic, Latin America and Europe.

Expressing confidence in its strategy and business model, the group has decided to once again pay a dividend to its shareholders, with an interim dividend of three euro cents to be paid in September.

IAG has also decided not to buy the remaining 80% of Air Europa's capital from Globalia, as it had promised to do last year, due to the current regulatory environment.

For the record, the European Commission decided earlier this year to open an in-depth investigation to assess the competitive consequences of the proposed acquisition.

Although IAG plans to retain its 20% stake in Air Europa, acquired in 2022, the Group will still have to pay Globalia a termination fee of 50 million euros.

On the London Stock Exchange, IAG shares reacted positively to all these announcements on Friday morning, posting a gain of 5% to top the FTSE 100 index.

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