IAG cancels limit on non-European share ownership

British Airways and Iberia parent IAG flew higher after ditching its rule to impose a limit on non-EU shareholders.

In February last year, IAG said it was fixing the maximum permitted ownership by non-European Union entities at 47.5% in order to keep its status as a European-owned airline.

However, the company said on Friday that non-EU ownership had fallen to 39.5%. As a result, IAG has removed the cap.

"The IAG board will continue to monitor the relevant non-EU persons ownership level," it said. "Under Article 11 of IAG’s bylaws, the board is authorised to re-impose the permitted maximum at any time if necessary."

IAG also owns Vueling and Aer Lingus.

At 1255 GMT, IAG shares were up 6.1% at 677.57p.