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International Airlines Group (IAG) Fundamentals


International Consolidated Airlines Group, S.A., also known as International Airlines Group, is the name of an Anglo-Spanish holding company formed on 8 April 2010 as a result of the proposed merger between British Airways and Iberia.


The new company will be the third largest airline holding company in the world by revenue,with 419 aircraft transporting passengers between 200 destinations.The new company will carry over 62 million passengers per year, according to British Airways executives.Both airlines will, however, continue to operate under their current brand names. British Airways shareholders will take a 55% stake in the new company, while Iberia shareholders will own the remaining 45% stake.

No - I've twice been tempted to sell some @330p - looks like I may have a wait!

Deutsche Bank Buy 0.00 323.20 360.00 360.00 Reiterates

New multi year high @368.40p

RBC Capital Markets Outperform 364.30 360.00 400.00 Reiterates

Deutsche Bank Buy 357.20 364.00 - 360.00 Reiterates

Deutsche Bank Buy 353.90 353.90 360.00 400.00 Reiterates

3rd Quarter results

IAG period highlights on results:

· Third quarter operating profit €690 million (2012: €270 million) before exceptional items
· At constant currency, third quarter passenger unit revenue up 6.7 per cent (excluding Vueling 7.4 per cent) and non-fuel unit costs down 4.3 per cent (excluding Vueling up 0.6 per cent)
· Operating profit for the nine month period €657 million (2012: €17 million) before exceptional items
· Revenue for the nine month period up 3.9 per cent to €14,113 million
· Passenger unit revenue for the nine month period up 2.3 per cent (5.6 per cent at constant currency)
· Fuel costs for the nine month period down 3.4 per cent to €4,475 million (2012: €4,633 million). Fuel unit costs down 5.4 per cent at constant currency
· Non-fuel costs before exceptional items for the nine month period up 0.5 per cent at €8,981 million. Non-fuel unit costs down 3.5 per cent, down 1.1 per cent at constant currency
· Cash €3,740 million at September 30, 2013, up €831 million from December including €591 million of Vueling cash
· Adjusted gearing down 2 points to 49 per cent including Vuelin

IAG GROUP OCTOBER 2013 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ In October 2013, Group traffic measured in Revenue Passenger Kilometres increased by 8.9 per cent versus October 2012 (up 1.1 per cent on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 8.0 per cent (down 0.1 per cent on a pro-forma basis).

§ Group premium traffic for the month of October increased by 4.0 per cent compared to the previous year, on falling capacity.

§ For current outlook please see Quarter Three results presentation.


8 November 2013



STRATEGIC DEVELOPMENTS

On 29 October, Qatar Airways joined oneworld, becoming the first major Gulf carrier to join a global airline alliance. British Airways was its sponsor into the alliance. The airline serves more than 130 destinations in 70 countries. The addition of Qatar Airways to oneworld enhances the alliance's network and product offerings in one of the world's fastest growing regions for air travel demand.

British Airways announced that its hand-baggage only and new semi-flex fare options are now available across its short-haul network of more than 90 destinations.

On 15 October, Iberia unveiled its new corporate image as part of its transformation plan which aims to reshape the company into a modern, competitive and trend-setting airline. In mid-November Iberia will start to operate its fifth Airbus A330, which will be the first with the new livery in place.

Vueling will offer seven new destinations from Barcelona-El Prat airport in the summer 2014 season: Dakar, Warsaw, Leipzig, Budapest, Belgrade and Porto and Jerez. With these new routes, Vueling will have a total of 111 destinations from Barcelona to Europe, North Africa and Middle East.

Davy Research Outperform 370.05 349.00 - - Reiterates

Prime Markets Buy 367.40 349.00 385.00 385.00 Reiterates

Excellent gap up - £4 beckons.

Well done skinny - another choo, choo I've missed.:-)

Deutsche Bank Buy 384.20 384.20 400.00 430.00 Reiterates

HSBC Overweight 384.20 384.20 420.00 420.00 Reiterates

Directorate Change

IAG BOARD CHANGE

International Consolidated Airlines Group (IAG) is announcing that John Snow has notified his intention to resign as a director at the next IAG Board meeting on December 19, 2013.

The Board's Nominations Committee has proposed the appointment of Dame Marjorie Scardino as an independent non-executive director and this will be submitted for approval at the next Board meeting.

ends

INTERNATIONAL AIRLINES GROUP CAPITAL MARKETS DAY

At its Capital Markets Day today (November 15, 2013) IAG will update the market with the following information:

· IAG is targeting a €1.8 billion operating profit in 2015, up from €1.6 billion through:

o Impact of Vueling integration and performance

o Improved margins in British Airways increasing the 2015 operating profit target from £1.1 billion to £1.3 billion

o Iberia recovery plan on track with improvement expected

o Additional contribution coming from British Airways and Vueling growth


· Aiming for a level of EPS ≥ €0.54 (RoIC ≥ 12 per cent)

· Keeping 2015 leverage at around 55 per cent (pre IAS19)

· Heading for a business model that could sustain organic growth levels of 2-3 per cent (excluding Vueling) beyond 2015

o Assuming capex of €2.0 - €2.2 billion per year

o Providing market level returns for our shareholders


The presentations from the Capital Markets Day can be accessed via www.iairgroup.com and a webcast of the event will be available today from 0900 GMT/1000 CET.

IAG ups 2015 profit target on British Airways growth, Iberia recovery

(Reuters) - International Airlines Group on Friday raised its 2015 operating profit target by 12.5 percent, due to expected growth from British Airways (BA) and Vueling and the recovery of Iberia.

IAG, which owns the three airlines, raised its 2015 operating profit target to 1.8 billion euros ($2.42 billion) from 1.6 billion euros due to the expected impact of integrating Spanish budget carrier Vueling, which it took control of earlier this year, improved margins at BA and a recovery at Iberia.

Prior to Friday's statement the airline group is expected to report an average 2015 operating profit of 1.63 billion euros, according to Thomson Reuters data.

Credit Suisse Outperform 366.85 362.20 443.00 443.00 Reiterates

Nomura Buy 366.85 362.20 335.00 380.00 Retains

Jefferies International Buy 362.80 362.80 - 410.00 Retains

Nice chart skinny.

Making new highs this morning - 394.80p

New high and 4 quid @402.40p