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. European airlines overall have struggled in the past year with spiralling costs and delivery delays.

Shares of British Airways owner International Consolidated Airlines (GB:IAG) were flying high on Friday after the company beat estimates for

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