International Airlines Group (IAG) has seen its revenue increase by 7.9% year-on-year to €24m (£19.95m) in Q3, as it announced a €350m (£291m) share buyback scheme.

The British-Spanish firm, which owns airlines including British Airways, Aer Lingus and Iberia, said the rise was a result of improvement in cargo revenue across the group, as well as maintenance repair and overhaul revenue at Iberia.

IAG’s year-on-year operating profit in Q3 increased by 15.4% to €3.32bn (£2.76bn), while its profit after tax jumped by 8.7% to €2.34bn (£1.95bn).

Furthermore, it added that demand remains strong across all of its core markets, supporting a 1.2% increase in passenger unit revenue quarter-on-quarter.

Chief executive officer at IAG, Luis Gallego, said: "We achieved a very strong financial performance in Q3 2024, with a 15.4% increase in operating profit compared to the same period last year and improving our margin to 21.6%. This is due to the effectiveness of our strategy and group-wide transformation.

"We are also delivering on our commitment to provide sustainable returns for shareholders.

"Demand remains strong across our airlines and we expect a good final quarter of 2024 financially."

IAG said it expects its "strong financial performance to continue for the rest of the year", with planned capacity growth set to be at 6%.

In the longer term, it added that it sees a "positive sustainable demand" for travel, and the firm is "committed to sustainable value creation and cash returns" for its shareholders.

As a result, it has announced a new €350m (£291m) share buyback scheme, reflecting its "confidence in the strategy and business model, as well as the long-term prospects of the business".

Investment director at AJ Bell, Russ Mould added: "Shares in IAG have taken off following better than expected third quarter results and a new €350m share buyback.

"Revenue growth mixed with stronger margins gave a nice boost to profit, which in turn has driven cash flow and continues IAG’s journey in strengthening its balance sheet. That puts it in a stronger position to crank up shareholder returns or potentially start thinking about making more acquisitions.

"It’s a radically different situation to three years ago when IAG was struggling under the weight of the global pandemic. The key to success in the airline industry is ensuring that planes are as full as possible, there are more planes in the sky than the previous year, costs are kept under control, and customers are spending more money across a range of items covering air fares, charges and consumables."

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