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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.

Could be wrong but I think 460 would be a good target with a Limit, could spike up there. Then we know what to do with spikes.

Liberum Capital Hold 423.40 375.00 450.00 Reiterates

skinny re. 433 (which re. 415). Filling the gap then.

I think it will hold the new level - when it gets there. Of course I want it to, but it's also realistic! 445-460 until next results, then up, up and away?

LATEST BROKER VIEWS

Date Broker New target Recomm.
1 Nov Barclays... 460.00 Overweight
31 Oct Beaufort... N/A Buy
31 Oct Liberum Capital 450.00 Hold
28 Oct Cantor... 520.00 Hold
28 Oct Credit Suisse 469.00 Outperform
25 Oct Exane BNP... 530.00 Outperform
19 Oct Credit Suisse 439.00 Outperform
14 Oct Credit Suisse 439.00 Neutral
13 Oct Exane BNP... 530.00 Outperform
7 Oct Deutsche Bank N/A Buy

OCTOBER 2016 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in October, measured in Revenue Passenger Kilometres, increased by 3.1 per cent versus October 2015; Group capacity measured in Available Seat Kilometres rose by 5.0 per cent.

§ Group premium traffic for the month of October increased by 4.7 per cent compared to the previous year.

4 November 2016

Berenberg Buy 434.30 - 595.00 Initiates/Starts

Another 18 points banked - 460 - still looks a leap too far atm?

Well done skinny!

My opinion FWIW, it will hold ~445 - 460 range until next results (see my post 436). Or something else positive, like Boris the Buffoon is sacked or sense comes into play within GB Govt.

Personally don't see why IAG can't get above 500 again and I'm happy to hold.

Upcoming Events

May be 460 this time?

If it can break 200DMA 480p next stop barring Armageddon :0)

Presumably rising fuel prices won't have an immediate effect?

.

Storms over Christmas as airline crews vote to strike

StockMarketWire.com
International Consolidated Airlines Group posts operating profits before exceptional items of €2,535m for the year to the end of December - 8.6% up on last time.

The group's performance was affected by an adverse currency impact of €460 million.

In particular, this was due to the weak pound following the EU referendum.

Revenue for the year fell by 1.3% to €22,567m and passenger unit revenue for the year was down 5.4% at constant currency.

Fuel unit costs for the year before exceptional items was down 26.8%, down 25.8% at constant currency.

Non-fuel unit costs for the year before exceptional items was down 4.1% and up 0.5% at constant currency.

Profit after tax of €1,952m was up 28.8% and diluted earnings per share rose by 25.7%.

The full year dividend of 23.5 cents is up 17.5%.

Chief executive Willie Walsh said: "In the quarter, we made an operating profit before exceptional items of €620 million, up from a €530 million operating profit last year, with an improvement of our underlying passenger revenue trend.

"For the full year, it was a good performance in a challenging environment with an operating profit of €2,535 million before exceptional items, up 8.6 per cent versus last year.

"Our performance was affected by an adverse currency impact of €460 million. In particular, this was due to the weak pound following the UK's EU referendum. However, despite that, we've made good progress and continue to build on all we've achieved in our first five years.

"In 2016, we carried more than 100 million passengers - double the number British Airways and Iberia carried in 2010, a year before IAG was created.

"We're committed to providing a sustainable dividend for our shareholders and are pleased to confirm that the Board is proposing a final dividend of 12.5 euro cents per share.

"This brings the full year dividend to 23.5 euro cents per share, subject to shareholder approval at our AGM in June.

"Also today we're announcing that we intend to carry out a share buyback of €500 million during the course of 2017 which may be implemented through one or more share buyback programmes.

"We have great confidence in IAG's future prospects and are increasing cash returns to our shareholders."

Cantor Fitzgerald Hold 548.25 500.00 500.00 Reiterates

Credit Suisse Outperform 529.75 631.00 657.00 Retains

StockMarketWire.com
International Consolidated Airlines Group's first quarter operating profits before exceptional items rose to €170m up from €155m last time - a record performance in what is traditionally its weakest quarter.

The group said the period had seen increasing fuel prices and a stronger US dollar against both the euro and sterling.

Sterling had also devalued significantly against the euro.

It said the transactional foreign exchange impact for the group was net nil, while translation exchange was significant.

The group's reported revenues and expenses were lower by €406 million and €374 million respectively with a net adverse impact on operating profit of €32 million.

Passenger revenue decreased 4.2% compared to the same period last year.

Passenger unit revenue (passenger revenue per ASK) was down 3.1 per cent at constant currency from lower yields (passenger revenue/revenue passenger kilometre) impacted by the timing of Easter.

At constant currency, passenger yields decreased on leisure routes with the shift in Easter from March last year to April this year, partially offset by improvements in corporate bookings.

IAG said: "Although passenger yields are down in the quarter, the passenger revenue performance trend improved versus the previous quarter. Passengers carried by the Group rose to 21,147 thousand, an increase of 3.8 per cent.

"Cargo revenue for the period decreased 2.3 per cent, 2.1 per cent at constant currency.

"The Cargo premium mix remained strong partially offsetting overall yield decreases while cargo tonnes carried were broadly flat. "Other revenue was up 13.7 per cent or €64 million excluding currency impacts, from an increase in activity at Iberia's third party maintenance (MRO) business, BA Holidays and Avios.

Chief executive Willie Walsh said: "We're reporting an operating profit of €170 million before exceptional items which is up from €155 million compared to last year.

"This is a record performance in Q1, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing. "The impact of currency exchange was €32 million in the quarter due to the translation of sterling profit into euros. "In March we launched LEVEL, our new longhaul low cost airline brand, which starts flights from Barcelona to Los Angeles, San Francisco, Punta Cana and Buenos Aires in June. It's already been extremely successful with sales running well ahead of expectations."

Separately, IAG said group traffic in April, measured in revenue passenger kilometres, increased by 10.0 per cent versus April 2016; group capacity measured in Available Seat Kilometres rose by 4.0 per cent.

Group premium traffic for the month of April increased by 7.0 per cent compared to the previous year.

APRIL 2017 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in April, measured in Revenue Passenger Kilometres, increased by 10.0 per cent versus April 2016; Group capacity measured in Available Seat Kilometres rose by 4.0 per cent.

§ Group premium traffic for the month of April increased by 7.0 per cent compared to the previous year.

5 May 2017



STRATEGIC DEVELOPMENTS

On 5 April, British Airways launched a £400 million investment plan which includes improvements in Club World, the introduction of Club Europe on UK domestic services, new lounges and First Wing direct security and lounge access at Heathrow. In addition, self-service check-in and biometric boarding gates will speed up airport processes. Over the next two years, the airline's shorthaul and longhaul fleets will be fitted with the latest generation Wi-Fi.

On 24 April, IAG announced that following its highly successful accelerator programme, Hangar 51, the Group will invest in two start-ups. Esplorio (an app that records and shares travel experiences) and Vchain (blockchain technology that allows customers to have control over their data and helps them get through airports faster) were selected to continue working with the Group to further develop their products and benefit customers. They will also receive funding from IAG's multimillion pound investment fund for digital transformation.

On 2 May, Vueling announced that it has carried more than 100 million passengers at Barcelona airport since it started operations 13 years ago. Vueling is the leading airline at El Prat from where it flies to more than 130 European destinations and has 36 per cent market share.