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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.

Deutsche Bank Buy 442.00 442.00 430.00 506.00 Reiterates

RED LINE IAG

British Airways rated top brand in the UK

BRITISH Airways has topped the latest Superbrands survey for the first time, as Apple plummeted to 14th place below Kellogg's and Andrex.

The flag carrier beat more than 1500 companies to the top of the annual ranking of brand strength in the UK, partly because of residual goodwill from its association with the 2012 Olympics and Paralympics, according to Superbrands council chairman Stephen Cheliotis.

Last year's leader, Rolex, moved down to second place, while Apple fell from second place last year to 14th. Google also dropped for the second year running, albeit only from sixth to seventh place, and Microsoft slipped from third to sixth.

Mr Cheliotis said: "British Airways has always performed well in the survey but over the last two years its reputation has climbed to new heights, partly through the cementing of its successful To Fly, To Serve positioning and the residual goodwill from its effective 2012 Olympic and Paralympic Games association."

Quietly making new 6+ year highs.

Final Results

FULL YEAR RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (February 28, 2014) presented Group consolidated results for the year to December 31, 2013.

IAG period highlights on results:

· Fourth quarter operating profit €113 million (2012: operating loss of €40 million) before exceptional items
· At constant currency and excluding Vueling and one-offs, fourth quarter passenger unit revenue up 2.7 per cent, and non-fuel unit costs down 2.7 per cent
· Operating profit for the year to December 31, 2013 of €770 million (2012: operating loss of €23 million) before exceptional items
· Revenue for the year up 3.1 per cent to €18,675 million and passenger unit revenue for the year up 0.6 per cent (3.7 per cent at constant currency)
· Fuel costs for the year down 2.5 per cent to €5,951 million (2012: €6,101 million). Fuel unit costs down 5.0 per cent at constant currency
· Non-fuel costs before exceptional items for year down 0.7 per cent at €11,954 million. Non-fuel unit costs down 5.6 per cent, down 2.7 per cent at constant currency
· Cash of €3,633 million at December 31, 2013 was up €724 million on 2012 year end (December 2012: €2,909 million).
· Adjusted gearing down 1 point to 50 per cent

Cantor Fitzgerald Hold 439.90 439.90 360.00 470.00 Reiterates

Deutsche Bank Buy 436.60 439.90 506.00 506.00 Reiterates

Jefferies International Buy 433.10 433.10 410.00 510.00 Retains

Back on the up.

Yep was giving this the once over earlier this afternoon.

MKS just beats it so bought that instead.

Already have 2 airline stocks.

Bought small amount SBs of IAG earlier to-day, but noted that it is marked up for UNCONFIRMED AGM on 7/4/2014.
Not sure this is correct.

Nothing in the link in the header for that day - Upcoming Events

It is marked up on Sharescope which is generally reliable.

Not sure!

AGM last year was 20th of June, Fred looks like its a rouge entry on S Scope.

GF,

Thanks.

Sharescope has updated 7/4/2014

Going nicely at the moment!

Would like to see it break above 460.

Then you may say sky is the limit 8-)

"Sharescope has updated 7/4/2014" - Fred is that when the AGM is?

Still nothing on their website.

Excellent bounce off of the 200ma.

HSBC note:
"Our downgrade of IAG to Neutral (IAG Time out, 10 January 2014) was driven by valuation, seeing the company’s earnings growth to be very good, but fully priced in. We think the recent pull back in airline share prices (IAG down 15% in the last two months) reflects reduced risk appetite in the stock market, but does not seem to be grounded in any change to industry or company prospects. Trading to March has been in line with our and the company’s expectations. We are therefore comfortable maintaining our existing estimates and target price, and upgrade IAG to OW(V).
Earnings momentum: We expect IAG’s earnings to FY15 to benefit from capacity growth at British Airways, as the company uses its new A380s, B787s and B777-300s to grow on the acquired bmi slot portfolio at Heathrow, taking advantage of relatively low BA cost base. We expect Iberia to break into profitability on the basis of the hard fought restructuring, the recent productivity agreements and recovering local economy. Meanwhile Vueling continues to grow apace, (traffic up 28% in Q114). Recent positive developments have also included the integration of USAirways into the American-IAG-Finnair transatlantic joint venture, the start of codesharing with Qatar Airways and the start of the IAG-Finnair-JAL Siberian joint venture.
Capacity remains the key risk: Our key concerns for IAG remain the capacity growth on the North Atlantic and on European short haul, the start of the Delta-Virgin joint venture and the challenges of Vueling’s new Rome base.
Upgrade to OW (V): In the mid 400p range, two months ago, we thought that the share needed a meaningful injection of fresh catalysts to drive the stock higher. At the current share price we think that delivering the market estimates and company EUR1.8bn EBIT target for FY15 should be sufficient to generate upward share price momentum. On our estimates it trades on FY15 PER of 8.2x and EV/EBITDRA of 3.6x. It is difficult to anticipate when the overall market momentum will return to a more positive tone, but we expect IAG Q1 14 results on May 9 to offer reassurance on current market estimates."

Thanks Harry - I'll be happy when it regains the 420 mark.

Cantor Fitzgerald Hold 401.25 394.20 470.00 470.00 Reiterates

Deutsche Bank Buy 401.25 394.20 506.00 506.00 Reiterates

Not sure if there is much more to go on the upside.

Airlines are fickle to say the least. Appears like this one has already arrived!!!!