British Airways owner IAG beat expectations in its full-year results as strong travel demand in the post-pandemic era continued through 2024.

The airline conglomerate reported operating profit of €4.3bn (£3.6bn), up 22 per cent year-on-year and ahead of the €3.7bn analysts had forecast.

Revenue also came in ahead of expectations, rising nine per cent to €32.1bn.

Following the bumper performance, the IAG on Friday announced a €1bn share buyback programme to be implemented over the next 12 months.

Shares in the IAG soared in 2024 as the more than two-year post-pandemic boom in travel demand failed to let up.

The stock is up more than 120 per cent over the last 12 months and rose 3.6 per cent in early deals on Friday.

Its subsidiary British Airways, which unveiled a mega £7bn investment programme in March, earned more than £2bn last year, well ahead of a £1.3bn profit haul in 2023.

The London-listed airline is now proposing a dividend of €0.06 (5p) per share, taking its full-year dividend to €0.09 (7p). This means investors can expect around €435m (£359m) this year.

“These results highlight the quality of our businesses and effectiveness of our strategy, underpinned by the successful execution of our transformation programme across the group,” chief executive Luis Gallego said in a statement to markets.

“We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago.

Gallego added: “We are focused on continuing to make our brands the first choice for customers, by growing our network and enhancing the customer proposition, while our disciplined capital allocation ensures we can continue to invest in the business, deliver strong financial results and create sustainable value for our shareholders.