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. Its shares jumped 5% to hover close to a five-year high of 368 pence it hit in early February,

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