IAG Earnings: Record Margins, Premium Durability Extends Valuation Horizon; Fair Value Up 18%

IAG delivered another record year, with operating margin at 15.1%, return on invested capital at 18.5%, and free cash flow of EUR 3.1 billion after EUR 3.4 billion in capital expenditure. Revenue rose 3.5% to EUR 33.2 billion, with passenger unit revenue broadly flat and capacity up 2.4%.