BRITISH AIRWAYS owner IAG will report its firstquarter results on Friday as investor scepticism grows over its latest attempt to purchase Spanish carrier Air Europa.

There has been much consolidation in the market following the pandemic, with Lufthansa taking a 41 per cent stake in ITA Airways, and Air France snapping up a 20 per cent stake in Scandinavian carrier SAS.

But the conglomerate IAG, which also owns Iberia, Vueling and Aer Lingus, has faced roadblocks in its €400m (£342.6m) bid for Air Europa, which would see it acquire the remaining 80 per cent of the business it does not already own.

Earlier this year, the European Commission issued a statement of objections to IAG's proposed acquisition, citing potential reductions in competition on Spanish domestic, transatlantic and international short-haul routes.

Despite uncertainty surrounding its bid for Air Europa, IAG's share price has continued a strong performance following a record financial year in 2023. Shares are up over 14 per cent this year.

Top of the list for shareholders though will be an update on the increasingly likely return of a dividend this year, which would be a first since before the pandemic. One key factor for the IAG's decision will be whether its £7bn investment programme to modernise British Airways, goes smoothly, the report said.

(c) 2024 City A.M., source Newspaper