IAG, the owner of airlines including British Airways, Iberia and Aer Lingus, reported a 27% rise in annual operating profit to 4.4 billion euros.

British Airways owner IAG reported a 27% jump in annual operating profit on Friday, beating market expectations as it curbed costs and growth in its lucrative transatlantic routes took off.

The group said it would buy back around $1 billion in shares after earnings were boosted by commercial and cargo demand.