International Consolidated Airlines Group (ICAGY) , the holding company of flagship carrier British Airways, saw it shares rise to the top of the FTSE 100 leaderboard Wednesday after it sealed an agreement to cap its pension liabilities.
IAG shares surged 4% in London, against a broader 1.2% decline for the benchmark, after British Airways said it had reached a deal that would see it plug a £2.8 billion ($3.4 billion) hole in its key New Airways Pension Scheme and potentially allow for the payment of shareholder dividends.
The agreement will see London-based BA pay £300 million each year until 2027, with additional contributions capped at £150 million per year, based British Airways' cash position on March 31 in any given year.
IAG shares were quoted at 417.9 pence each later Monday, a 4.01% gain on the session. However, the shares have fallen by around 31.5% so far this year, and are down 21% since the U.K. voted to leave the European Union on June 23.