British Airways owner IAG bucks hard year for airline stocks

It’s been a tough year for investors in European aviation, with Boeing’s production woes, engine problems grounding aircraft and the still-sluggish corporate-travel market weighing on the sector. Carriers including Air France-KLM, Deutsche Lufthansa and Wizz Air Holdings Plc have failed to replicate the post-pandemic gains of 2023 — but one airline group has bucked the trend. British Airways’ parent IAG almost doubled in value this year, making it the second-best performer on the Bloomberg World Airlines Index, and the only European carrier among the Top 10 gainers. Lufthansa, the biggest airline group in the region, is last on that list, with a 24% decline. There are several reasons for IAG’s standout year. Its core transatlantic market boomed, bolstered by the introduction of extra-long-range Airbus SE narrow-body jets which has expand the group’s US reach from Europe. Shareholders benefited from a dividend reinstatement, and the company repaid all of its pandemic-era debt. And to set its customer experience apart from competitors, British Airways recently unveiled a brand-new first class cabin that will debut on the Airbus A380 double decker in 2026 and will compete against Lufthansa’s long-delayed Allegris product.<br/>