IAG Investor Relations

Recent Broker notes

BarChart Indicators

Recent Market news

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.

Long here - maybe due a tick up and a gap to fill.

Half Year results August 1st.

IAG - Iberia reaches agreement with trade unions

IAG STATEMENT ON IBERIA

International Airlines Group announces that Iberia and its trade unions have today reached an agreement on collective redundancies for pilots and ground staff. This could lead to a reduction of up to 1,427 jobs at the airline.

The agreement enables Iberia to continue with its transformation plan to introduce permanent structural changes across the airline and to facilitate profitable growth in the future.

Iberia's cabin crew staff will not be affected by this process.

Half Yearly Report

SIX MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (August 1, 2014) presented Group consolidated results for the six months to June 30, 2014.

IAG period highlights on results:

· Second quarter operating profit €380 million (2013: operating profit of €245 million before exceptional items), €135 million better than last year
· At constant currency, second quarter passenger unit revenue down 0.4 per cent (excluding Vueling up 0.1 per cent) and non-fuel unit costs down 4.4 per cent (excluding Vueling down 2.5 per cent)
· Revenue for the quarter up 6.7 per cent to €5,086 million, up 8.2 per cent at constant currency
· Fuel unit costs for the quarter down 9.3 per cent, 5.4 per cent at constant currency
· Operating profit for the half year €230 million (2013: operating loss €33 million before exceptional items), €263 million better than last year
· Cash of €4,904 million at June 30, 2014 was up €1,271 million on 2013 year end
· Adjusted gearing down 4 points to 46 per cent

New Longhaul Aircraft for Iberia

International Airlines Group (IAG) is converting eight Airbus A350-900 aircraft options into firm orders and securing eight A330-200 aircraft for Iberia.

These aircraft will replace 16 A340 family aircraft in Iberia's longhaul fleet and will be delivered between 2015 and 2020.

Willie Walsh, IAG chief executive, said: "Iberia has taken significant steps to restructure its business and the progress made so far means that we can bring new longhaul aircraft into the airline's fleet. These orders demonstrate our commitment to make Iberia competitive.

"Both aircraft will provide cost efficiencies and environmental benefits, enabling Iberia to replace its long haul fleet with modern and fuel efficient aircraft. The new technology and improved aerodynamics will lower fuel burn and CO2 emissions per seat by 18 per cent, as well as providing both noise and NOx performance advantages.

"Retaining an all Airbus longhaul fleet will also generate cost savings in maintenance and crewing".

IAG secured commercial terms for the A350 aircraft as part of the Group longhaul order announced in April 2013.

The eight A330 aircraft will be obtained either by converting existing options from the 2011 Airbus order or from the operating lease market, depending on financial and delivery terms.



ends

Deutsche Bank Buy 330.80 330.80 470.00 470.00 Reiterates

Cantor Fitzgerald Hold 329.80 330.80 470.00 470.00 Reiterates

Davy Research Neutral 329.80 330.80 - - Reiterates

JULY 2014 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

• In July 2014, Group traffic measured in Revenue Passenger Kilometres increased by 7.1 per cent versus July 2013; Group capacity measured in Available Seat Kilometres rose by 9.2 per cent.

• Group premium traffic for the month of July increased by 7.6 per cent compared to the previous year.

5 August 2014

STRATEGIC DEVELOPMENTS

On 1 August, IAG announced that it is converting eight Airbus A350-900 aircraft options into firm orders and securing eight A330-200 aircraft for Iberia. These aircraft will replace 16 A340 family aircraft in the airline's long-haul fleet and will be delivered between 2015 and 2020. The new technology and improved aerodynamics will lower fuel burn and CO2 emissions per seat by 18 per cent, as well as providing both noise and NOx performance advantages.

On 31 July, IAG Board approved the settlement by Iberia of the derivative transaction on its entire stake in Amadeus that it entered into in August 2012. The transaction was a risk management exercise and allowed IAG to safeguard the value of that stake at 2012 levels to fund Iberia's transformation plan.

On 24 July, Iberia and its trade unions reached an agreement on collective redundancies for pilots and ground staff. This could lead to an additional reduction of up to 1,427 jobs at the airline. The agreement enables Iberia to continue with its transformation plan to introduce permanent structural changes across the airline and to facilitate profitable growth in the future.

Drop in airlines today maybe something to do with that plane that was escorted in to Manchester by fighter jets due to a threat on board ..

Ebola outbreak: BA suspends flights to Sierra Leone and Liberia over virus
British Airways says the 'deteriorating public health situation' relating to the Ebola virus is why they have suspended flights until August 31 http://telegraph.co.uk/news/aviation/11013996/Ebola-outbreak-BA-suspends-flights-to-Sierra-Leone-and-Liberia-over-virus.html

This wont help either.

http://www.zerohedge.com/news/2014-08-05/russia-plans-airspace-blockade-european-flyovers-sanctions-retaliation

Ebola: BA suspends flights to Liberia and Sierra Leone

380 area previous S/R.

AUGUST 2014 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

• In August 2014, Group traffic measured in Revenue Passenger Kilometres increased by 8.7 per cent versus August 2013; Group capacity measured in Available Seat Kilometres rose by 9.5 per cent.

• Group premium traffic for the month of August increased by 8.7 per cent compared to the previous year.

3 September 2014

STRATEGIC DEVELOPMENTS

British Airways and Iberia have jointly launched a new product which allows customers to hold a reservation and a fare for up to 72 hours before deciding to purchase tickets. It applies to bookings for all flights operated by British Airways, Iberia, Iberia Express and Air Nostrum. The new scheme is designed to give travellers the time to make sure they're happy with their flight choices before paying.

On 1 September, Iberia resumed its flights between Madrid and Montevideo as well as Santo Domingo. The airline is offering four weekly services to the Uruguayan capital and five flights per week to the capital of the Dominican Republic. Iberia operates more than 200 weekly flights between Madrid and 16 Latin American destinations.

Credit Suisse Outperform 375.25 366.70 587.00 587.00 Reiterates

Bank of America Merrill Lynch Buy 345.60 345.60 - 520.00 Reiterates

fred - i must confess i really don't like BA though i guess they're one better than iberia ..... that said, i don't like domino's either, but assuredly hold those (sipp)

Date Broker New target Recomm.
28 Oct Deutsche Bank N/A Buy
27 Oct Credit Suisse 618.00 Outperform
24 Oct Credit Suisse 618.00 Outperform
24 Oct Cantor... 470.00 Hold
23 Oct Credit Suisse 618.00 Outperform
20 Oct Liberum Capital 550.00 Buy

Directorate Change

3rd Quarter Results

IAG period highlights on results:

· Third quarter operating profit €900 million (2013: €690 million) before exceptional items, €210 million better than last year
· At constant currency, third quarter passenger unit revenue down 0.9 per cent and non-fuel unit costs down 4.5 per cent
· Revenue for the quarter up 8.5 per cent to €5,866 million, up 6.9 per cent at constant currency
· Fuel unit costs for the quarter down 7.5 per cent at constant currency
· Operating profit for the nine months €1,130 million (2013: €657 million) before exceptional items, €473 million better than last year
· Exceptional charge of €82 million for currency re-evaluation
· Cash of €5,064 million at September 30, 2014, up €1,431 million on 2013 year end
· Adjusted gearing down 4 points to 46 per cent

Liberum Capital Buy 410.60 550.00 550.00 Reiterates

Cantor Fitzgerald Hold 410.60 470.00 470.00 Reiterates

Capital Markets Day & Dividend Statement

At its Capital Markets Day today (November 7, 2014) IAG will update the market with the following information:

· Long-term planning goals for 2016-2020 include:

o Return on Invested Capital (real terms) of 12%+
o An operating profit margin of 10% to 14%
o Average EPS growth of 10%+ per annum
o EBITDAR of approximately €5bn average per annum
o Capex of €2bn to €3bn per annum
o Equity free-cash flow of €1bn to €1.5bn per annum
o ASK growth of approximately 3% to 4% per annum
o Gearing to be in the investment grade zone

· Dividend policy statement:

o It has been the stated intention of IAG to distribute regular dividends to our shareholders in the medium and long term, in an amount appropriate to market conditions, depending on a number of factors, including but not limited to, the earnings of the company, financial conditions, cash requirements and prospects and legal requirements.

o The Company has made significant progress during 2014 and we remain confident in meeting our 2015 financial targets which we see as the trigger to introducing a dividend.

o Therefore we anticipate making a declaration in 2015 as the first step in our plan to introduce a sustainable dividend payment.

o The initial dividend would be based on a payout ratio of 25% of our underlying profit after tax.

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 0830 GMT/0930 CET.