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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.

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!!!!

1st Quarter Results

THREE MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (May 9, 2014) presented Group consolidated results for the three months to March 31, 2014.

IAG period highlights on results:

· First quarter operating loss €150 million (2013: operating loss of €278 million) before exceptional items
· Revenue for the quarter up 6.7 per cent to €4,203 million, up 7.6 per cent at constant currency
· Non-fuel costs up 3.8 per cent, up 4.8 per cent at constant currency
· At constant currency, first quarter passenger unit revenue down 1.4 per cent (excluding Vueling down 0.5 per cent) and non-fuel unit costs down 6.2 per cent (excluding Vueling down 4.2 per cent)
· Fuel unit costs for the quarter down 8.9 per cent, 7.4 per cent at constant currency
· Cash of €4,004 million at March 31, 2014 was up €371 million on 2013 year end
· Adjusted gearing remains at 50 per cent

APRIL 2014 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

APRIL 2014 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

§ In April 2014, Group traffic measured in Revenue Passenger Kilometres increased by 18.0 per cent versus March 2013 (up 9.5 per cent on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 16.6 per cent (up 7.6 per cent on a pro-forma basis).

§ Group premium traffic for the month of April increased by 4.0 per cent compared to the previous year.

§ For current outlook please see Quarter One results presentation.


9 May 2014



STRATEGIC DEVELOPMENTS

In April, Iberia signed labour agreements with its pilots, cabin crew and ground staff unions after ratification by the unions' assemblies. Iberia also announced that it is gradually re-opening some routes including long-haul services to Santo Domingo and Montevideo as well as short-haul flights to Istanbul, Amsterdam, Athens and Stockholm.

British Airways announced the location of the world's first facility to convert landfill waste to jet fuel. The airline has committed to buying all of the jet fuel from the plant being built in Essex by Solena Fuels which will go into production in 2017.

Vueling has announced new flights from France to Catania, Palermo and the new route between Rennes and Bastia. The airline will also operate from Barcelona to Thessaloniki and Yerevan (Armenia) and from Seville to Malta.

Traffic Statistics May 2014

In May 2014, Group traffic measured in Revenue Passenger Kilometres increased by 7.3 per cent versus May 2013; Group capacity measured in Available Seat Kilometres rose by 8.0 per cent.

Group premium traffic for the month of May increased by 9.7 per cent compared to the previous year.

Underlying market conditions remain unchanged from those published at Quarter One results.

STRATEGIC DEVELOPMENTS
On 19 May, British Airways announced five new routes from Gatwick to Cagliari in Sardinia, Crete and Rhodes in Greece, and Bodrum and Dalaman in Turkey. The airline will start these services in April 2015.

In June, Iberia will add additional summer service from Madrid to Chicago, increasing to 10 weekly services from seven. In addition, Iberia will increase year-round service to Panama, one of Latin America’s fastest growing markets, increasing from five weekly services to six in June and to seven in July.

On 1 May, Vueling started operations from its new base in Brussels. The airline has also begun services between Rome and Catania, connecting the capital with Southern Italy.

Credit Suisse Outperform 403.15 403.70 587.00 587.00 Reiterates

Gatwick Airport back in the black as it pushes for a new runway

Deutsche Bank Buy 370.50 370.50 506.00 506.00 Reiterates

Barclays Capital Overweight 373.00 373.00 500.00 500.00 Reiterates

British Airways Has Even Harsher Rules About Smartphones Than The US