Aer Lingus parent International Consolidated Airlines' Group (IAG) has approved its first interim dividend since the group was established following a merger of British Airways and Iberia in 2011.
IAG, which reports quarterly results early tomorrow, said it will pay 0.10 cents per share.
"For the full year we expect to pay out 25 per cent of our underlying profit after tax in dividends and plan to announce a proposal for a final dividend for 2015 when the full year results are published," said chief executive Willie Walsh.
IAG is forecast to post a huge jump in third quarter earnings with Goodbody expecting a €1.29 billion operating profit compared to €900 million for the same period a year ago. It suggests that some €60m of operating profit will be derived from Aer Lingus.
In a note to investors, Goodbody also said it expects a guidance upgrade on full-year earnings. Currently the guidance is in excess of €2.2 billion, however the forecast suggests this to rise to 2.36 billion.
IAG formally took control of the Irish airline in early September. The group first launched a €1bn bid for Aer Lingus in December, which was rejected on the grounds that it “fundamentally undervalued” the airline. The group later upped its bid to €2.55 a share and ultimately succeeded in getting approval from the major shareholders in the airline, including the Government’s 29.7 per cent stake.
