The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in International Consolidated Airlines Group (LON:IAG). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

View our latest analysis for International Consolidated Airlines Group

International Consolidated Airlines Group's Improving Profits

International Consolidated Airlines Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. Thus, it makes sense to focus on more recent growth rates, instead. International Consolidated Airlines Group's EPS shot up from €0.41 to €0.54; a result that's bound to keep shareholders happy. That's a commendable gain of 33%.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. It's noted that International Consolidated Airlines Group's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. While we note International Consolidated Airlines Group achieved similar EBIT margins to last year, revenue grew by a solid 12% to €31b. That's encouraging news for the company!

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for International Consolidated Airlines Group?

Are International Consolidated Airlines Group Insiders Aligned With All Shareholders?

It's a good habit to check into a company's remuneration policies to ensure that the CEO and management team aren't putting their own interests before that of the shareholder with excessive salary packages. The median total compensation for CEOs of companies similar in size to International Consolidated Airlines Group, with market caps over €7.2b, is around €5.2m.