British Airways owner IAG SA boosted full-year earnings 8.6 percent and said it will return 500 million euros ($530 million) to shareholders after fuel costs fell and the company limited capital spending in response to last year’s Brexit vote. Operating profit excluding one-time items rose to 2.54 billion euros from 2.34 billion euros in 2015, London-based IAG said in a statement Friday. The company forecast a figure of about 2.5 billion euros in October and analysts has predicted 2.52 billion euros. IAG, which also owns Spain’s Iberia and Aer Lingus of Ireland, cut its 2016 guidance twice last year as it reined in spending and slowed capacity growth after June’s vote to quit the European Union. While the pound’s slide hurt the value of sterling sales, wiping 460 million euros from earnings, the company said demand improved in the second half and that profit will gain this year. “We’ve made good progress and continue to build on all we’ve achieved in our first five years,” Chief Executive Officer Willie Walsh said. “We have great confidence in IAG’s future prospects and are increasing cash returns to our shareholders.” Yield Revival Shares of IAG rose as much as 2.9 percent and were trading 2.6 percent higher at 517.50 pence as of 8:03 a.m. in London. They’ve gained 17 percent this year following a 28 percent decline in 2016, mostly in the wake of the EU poll. IAG will implement the share repurchase program over the course of this year via one or more buybacks, Walsh said. The company’s cash position improved by 572 million euros to 6.43 billion euros during 2016. Sales at Europe’s second-biggest airline group fell 1.3 percent to 22.6 billion euros, clipped by a decline in fares following a spate of terror attacks across the region, the decline in fuel prices and market softness after the Brexit vote. Yields showed signs of a revival toward the end of the year, Walsh said. Passenger numbers surged 14 percent in the year to 100.7 million, boosted by a full year of figures from Aer Lingus, purchased in 2015, and strong gains at Iberia and no-frills unit Vueling. IAG plans to limit seat growth this year, boosting capacity 2.5 percent, compared with 4.3 percent increase in 2015. Aer Lingus will grow fastest with a near 16 percent advance, while British Airways is set to see an increase of just 1.5 percent. Walsh said that Vueling should return to significant profit growth after the division was the only one to suffer a slide in earnings last year. IAG is planning to commence low-cost trans-Atlantic flying from Barcelona this summer, linking up with short-haul routes operated by Vueling, as Norwegian Air Shuttle ASA expands into heavily discounted long-haul services. The CEO said a route announcement is imminent with ticket sales to start “in the very near future.” IAG has also ordered seven long-range variants of Airbus Group SE’s A321neo single-aisle jets that will be deployed by Aer Lingus on U.S. routes, replacing aging Boeing Co. 757s. Walsh said that more of the planes could be purchased for the U.K. and Spain and could operates routes to Africa, as well as across the Atlantic.