Alphavalue / Divacons | The Spanish-British airline could abandon its attempt to acquire the Portuguese airline TAP, according to Bloomberg. IAG announced in November that it was interested in acquiring a minority stake in the airline, joining its competitors Air France-KLM and Lufthansa, who had also expressed interest in the privatisation of TAP. A final decision has not yet been made, so IAG could also submit a non-binding bid before…

Morgan Stanley | Axel Stasse (analyst) notes that risks to oil supply could keep fuel prices high for longer, whilst European airline shares are not fully reflecting demand risks. He considers the slight 18% underperformance relative to the market —compared with previous shocks of 35–40%— suggests that investors do not expect the current fuel price surge to remain at high levels, or believe that airlines can offset fuel inflation via…