IAG

iag aireuropa

Iberia finalising Air Europa route divestiture package to be submitted to Brussels for approval by authorities

Alphavalue/DIVACONS | Iberia is finalising the Air Europa route divestment package it will submit to Brussels to resolve supply-side constraints and obtain EU regulatory approval for the purchase of Globalia’s airline. On the other hand, the Irish fund Helikon Investments has notified the National Securities Market Commission (CNMV) of its entry into the capital of the Spanish-British airline (>3%) through the acquisition of several swaps that place it as an…


IAG

IAG pays off €3,271 M of loans signed between 2020 and 2021 due to mature between 2024 and 2026

Link Securities | IAG (IAG) has repaid €3,271 million of debt loans that its various airlines signed between 2020 and 2021, which matured between 2024 and 2026, according to Expansión newspaper. The average cost of these loans stood at 9%, compared to the 4.5% – 5.25% that is currently the price of money in Europe and the UK. With the flow of income normalised, thanks to the increase in demand,…


iag aireuropa

EC foresees significant competition concerns in IAG’s purchase of Air Europa

Banc Sabadell: The European Commission (EC) would see significant competition problems in the purchase of Air Europa by IAG (IAG), much more than in 2019, when the operation was initially considered, due to the greater weight of the Spanish market since then. It should be recalled that the EC communicated at the end of January that it was initiating a detailed investigation (phase II) into the proposed acquisition of Air…


iag aireuropa

IAG: EC’s detailed review of Air Europa acquisition neither prejudges outcome nor changes forecast of final decision by 4Q24

Banco Sabadell: The EC said yesterday it is launching a detailed (phase II) investigation into Iberia’s proposed takeover of Air Europa as it wants “the transaction not to adversely affect prices or quality of services”, according to Vestager. The EC now has 90 working days (until 7 June 2024) to take a final decision, provided it does not request additional information from the parties involved, in which case the clock…


IAG new

IAG to invest €6 billion in Spain over next five years to introduce new lower-emission aircraft, among other goals

Link Securities| The holding company IAG plans to invest €6 billion in Spain over the next five years to renew its fleet and advance its commitment to decarbonisation, Expansión newspaper reported on Friday. This is one of the messages conveyed by the airline group’s CEO, Luis Gallego, to Prime Minister Pedro Sánchez at their meeting in La Moncloa. IAG has already invested another €5 billion in the last five years….


IAG

IAG to not return to dividend until balance sheet is robust and investment plans more advanced

Intermoney| IAG held its Capital Markets day this morning at its London Heathrow headquarters, where it announced its strategic priorities and medium-term outlook for the Group, as well as the initiatives with which the Group intends to achieve sustainable growth and maximise long-term shareholder returns. The medium-term objectives (2024-2026) include the following: Sales growth will remain attractive thanks to organic capacity growth of 4-5% per annum.Target EBIT margin of 12-15%…


IAG

Record 3Q23 results for IAG, revenues of €8,646m, comfortably beating 2022 (+18%) and 2019 (+22%) figures

Intermoney : Better than expected results at all levels. Well ahead of 2022 and 2019 data. Capacity reaches 95.6% of that achieved in 2019, but higher tariffs allow improvement on pre-pandemic results: Revenues of €8,646m, +18% vs 3Q22 and +19% vs 3Q19. Above our estimates (€8,351m) and below consensus (€8,832m). EBIT of €1,745m, +45% vs. 3Q22 and +22% vs. 3Q19, reaching its historical record in a 3Q. Above both our…


Iberia grows more than IAG´s other airlines, while Brexit is debated

Vueling agrees 4.5% pay rise by 2022 for cabin crew

Banco Sabadell: According to press reports, Vueling, which represents ~7.5% of IAG’s employee cost, has reached a wage agreement with its cabin and office crew, who in turn make up 69% of the company’s total employees, establishing a +4.5% increase for 2022 and an annual non-consolidated payment of 0.8%. In addition, for 2023, an increase of +3%, which could rise to +4% under certain unpublished conditions, and an annual non-consolidated…


IAG

British Airways reaches agreement on 13% pay rise to curtail strike risk

On Friday, British Airways (IAG) (45% of 1H23 EBIT) and Unite (UK union) reached an agreement to increase pay by 13% in 2023 (~24,000 employees; excluding pilots). In addition, a one-off lump sum payment of £1,000 (~1,150 euros) was agreed. The agreement has already been approved by the union’s membership. Assessment: Positive news insofar as the risk of strike action is mitigated in peak season (~40/50% of EBIT is generated…


IAG new

IAG: passenger revenues grow in 2Q23 to 121% of 2019 levels (+6% quarter-on-quarter)

British Airways and Iberia (IAG) aircraft at Barajas airportMorgan Stanley| IAG’s passenger revenue (PRASK) accelerated sharply in 2Q23 to 121% of 2019 levels (+6% q/q), with management indicating that the bookings they have seen so far have shown no signs of weakness, implying that this pace can be sustained. With 80% of the 323 already sold, Conor Dwyer (analyst) has revised its estimates of PRASK to match it with management’s…