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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.

UBS update boosts IAG


Shares in International Airlines Group have surged this morning after UBS upgraded stock from ‘neutral’ to ‘buy’.

UBS issued the statement on hopes of a successful resolution to IAG plans to restructure loss-making carrier Iberia.

IAG, which also operates British Airways, reach an agreement on a five year labour deal with unions in December, which also saw planned strikes called off

In a statement UBS said: “Despite its share price being up over 25 per cent in 2012, IAG was the worst performing European airline share under our coverage, underperforming Lufthansa by over 30 per cent and Air France KLM by around 45 per cent.

“We think that IAG could be the laggard most likely to outperform in 2013 should it achieve the concessions the company wants from Iberia staff.”

Heathrow: 2012 'busiest year on record'

Heathrow has said that it handled 70 million passengers in 2012, the highest number on record, as the crowded airport saw bigger and fuller planes.

Numbers rose 0.9% from 2011, with 3.2% growth in its staple North Atlantic business, and traffic to the Far East and Brazil boosted by new routes.

December was also a record month at the airport, with China traffic up 23%.

Who owns Dreamliners?



Air India: 6

All Nippon Airways (Japan): 17

Ethiopian Airlines: 4

Japan Airlines: 7

LAN Airlines (Chile): 3

Lot Polish Airlines: 2

Qatar Airways: 5

United Airlines (US): 6

Total: 50

Source: Boeing

220p looks a key area.

Uncrossed @218.4 the highest since mid 2011.

Clear of 220 atm @226.

Analysts at JP Morgan moved from neutral to overweight on IAG, saying:

We see the decision by Iberia unions to negotiate the details of the restructuring plan with no change to its overall targets as lowering the short-term risk of turbulence surrounding its implementation. We believe IAG shares will outperform once Iberia reaches agreement with unions (or implements unilateral cuts), and see the recent under performance as a good entry point for investors.

RNS Number : 9660W

International Cons Airlines Group

01 February 2013

IAG STATEMENT ON IBERIA TRANSFORMATION PLAN

International Airlines Group confirms that no agreement has been reached between Iberia and its trade unions over the airline's transformation plan proposals, published on November 9, 2012.

Iberia will, therefore, press ahead with the previously announced capacity reduction of 15 per cent for 2013.

IAG will also move forward on alternative plans to return Iberia to break-even, in terms of operating cash flow, by the second half of this year and restore Iberia to an acceptable level of profitability by 2015.

Willie Walsh, IAG chief executive, said: "We're disappointed that no agreement has been reached. Iberia is ready and willing to negotiate with the Trade Unions. We are determined and united to implement the necessary changes to secure the future survival and viability of Iberia".

ends

RNS Number : 1827X

International Cons Airlines Group

05 February 2013

IAG JANUARY 2013 - GROUP TRAFFIC AND CAPACITY STATISTICS

-- In January 2013, Group traffic measured in Revenue Passenger Kilometres rose by 0.7 per cent versus January 2012; Group capacity measured in Available Seat Kilometres was down 1.0 per cent.

-- Group premium traffic for the month of January grew by 2.7 per cent compared to the previous year, with a 0.3 per cent growth in non-premium traffic.

-- Underlying market conditions remain unchanged from those described at IAG Capital Markets Day on 9(th) November. There is continued firmness in trends at British Airways and weakness in Spanish markets as in the previous months.

February 5(th) , 2013

STRATEGIC DEVELOPMENTS

On February 1(st) , IAG confirmed that no agreement had been reached between Iberia and its trade unions over the airline's transformation plan. Iberia will press ahead with the previously announced capacity reduction of 15 per cent for 2013. IAG will also move forward on alternative plans to return Iberia to break-even, in terms of operating cash flow, by the second half of this year and restore Iberia to an acceptable level of profitability by 2015.

On January 31(st) , Malaysia Airlines joined oneworld alliance adding one of Asia's leading airlines to the group. Malaysia Airlines, which serves more than 60 destinations in almost 30 countries, will substantially expand the alliance's network in one of the world's fastest growing economic powerhouses, South East Asia.

Iberia unveiled its new long haul business and economy class cabins at the Fitur travel fair in Madrid. The new product will be introduced with the first of the new Airbus A330-300 being delivered in February.

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy. Further information on the primary risks to the Company and its risk management process is given in the Annual Report and Accounts 2011; this document is available on www.iagshares.com.

IAG Update on Iberia Transformation Plan

International Airlines Group announces that Iberia has today informed its employees, trade unions and the Spanish Employment Ministry that it has started the formal process of collective redundancy. 3,807 jobs in the airline are affected. There will now be a 30 day consultation process.

This is part of Iberia's transformation plan to introduce permanent structural changes across the airline to stem its losses enabling it to grow profitably in the future.



ends

wee willie's crash and burn policy, he is destroying what was once the world's favourite airine.

Bullish engulfing candle on good volume yesterday.

American Airlines and US Airways poised 'to merge'

American Airlines and US Airways are planning to form one of the world's biggest airlines, according to media and newswire sources.

The two boards are said by a number of unnamed sources to have met on Wednesday to approve the merger.

A formal announcement is expected on Thursday.

Credit Suisse Outperform 225.80 226.90 259.00 259.00 Reiterates

A bit more here - IAG says it will not increase bid for budget airline Vueling

Feb 19 (Reuters) - The International Airline Group says it will not raise its 7 euros per share bid to buy out shares in Spanish budget carrier Vueling despite shareholder pressure for a higher offer.

Spanish website El Confidencial had cited unnamed sources as saying that IAG would present an increased offer of between 7.5 and 8 euros per share in the coming days after several shareholders rejected the current bid.

"IAG is moving ahead with its 7 euros per share offer, as the company informed on Feb. 6," an IAG spokeswoman told Reuters by email on Tuesday.

Bankia to sell 12%.

Bankia to reveal loss of more than €19bn

Bankia will next week reveal an annual net loss of more than €19bn, the largest in Spanish corporate history, as the nationalised lender that last year became the symbol of the country’s financial crisis speeds up its plan to close branches and sell assets.

Thursday, February 28 Full Year 2012 Results.

Final Results

IAG period highlights on combined results:

· Operating loss for the year to December 31, 2012 of €23 million before exceptional items (2011: operating profit €485 million). After exceptional items operating loss for the year not including Iberia restructuring and impairment was €68 million, compared to our guidance in November of €120 million

· Before exceptional items, British Airways made an operating profit of €347 million in the year to December 31, 2012 and Iberia made an operating loss of €351 million

· Non-operating charges for the year were €384 million, including €266 million related to non-cash pensions accounting requirements

· Loss before tax for the year of €997 million (2011: profit before tax of €503 million), including restructuring charge of €202 million for the Iberia transformation plan and €343 million impairment of Iberia intangible assets

· Revenue for the year up 10.9 per cent to €18,117 million (2011: €16,339 million), including €872 million or 5.4 per cent currency impact. Passenger unit revenue for the year up 9.4 per cent, on top of volume increases of 2.8 per cent

· Fuel costs up 20.4 per cent to €6,101 million (2011: €5,068 million before exceptional items). Fuel unit costs up 16.8 per cent, or 8.4 per cent at constant currency

· Non-fuel costs before exceptional items, up 11.6 per cent at €12,039 million, including €543 million of adverse currency translation. Non-fuel unit costs up 8.5 per cent, or 3.8 per cent at constant currency

· Capital investment of €1,239 million (2011: €1,071 million) including over €400 million on pre-delivery payments for future aircraft

· Cash of €2,909 million at December 31, 2012 was down €826 million on 2011 year end (December 2011: €3,735 million). Group net debt up €741 million to €1,889 million (December 2011: €1,148 million)

International Cons Airlines Group Traffic Statistics February 2013

IAG FEBRUARY 2013 - GROUP TRAFFIC AND CAPACITY STATISTICS

-- In February 2013, Group traffic measured in Revenue Passenger Kilometres decreased by 2.4 per cent versus February 2012; Group capacity measured in Available Seat Kilometres was down 4.4 per cent.

-- Group premium traffic for the month of February grew by 0.2 per cent compared to the previous year, with a 2.9 per cent decrease in non-premium traffic.

-- In February, Iberia cabin crew and ground employees' unions went on strike for five consecutive days: Iberia operated approximately 64 per cent of its flights. At a Group level, capacity was impacted by approximately 0.8 per cent.

-- For current outlook and strategic developments please see Quarter Four results presentation.

IAG Statement on Iberia

The board of International Airlines Group (IAG) has met today in an extraordinary session to analyse and assess the proposal issued by a mediator regarding Iberia.

As a result, the board has decided to accept the proposal.