The shares of IAG, Iberia’s parent company, were the most traded by Spanish investors in 2020, said the European online broker Degiro, while Tesla Motors’ shares were the most traded in Europe this year. IAG’s shares are followed by Banco Santander’s, the Chinese electric vehicle company NIO (listed on the New York Stock Exchange) and the US manufacturer Tesla, on the Nasdaq.
Renta 4 | This year we will see a deterioration in the airline business never before seen in the sector. We expect IAG to cut air traffic capacity by 48% compared to 2019, and by quarters (-10.5% annually already confirmed in Q1/-90% estimated in Q2/ and between -55%/-30% estimated in Q3). Nevertheless IAG is one of the companies with the highest liquidity (€10 Bn), the best operating margins and the lowest debt. The acquisition of Air Europa, with a possible improvement of the conditions, is an additional advantage.
Renta 4 | The present difficult conditions caused by Coronavirus prevent the IAG directive from announcing an estimated operational performance guide for 2020. In principle, the most complicated months should be April and May.
On Wednesday, President Trump announced a ban on flights to the U.S. from continental Europe for the next 30 days, with the aim of curbing the coronavirus’ spread. The impact will be high for European carriers such as Air France-KLM and Lufthansa and, to a lesser extent, for IAG. In 2019, passengers to North America accounted for 11% of IAG’s total.
Renta 4 | Reservations for the January / April period are + 1% higher than those of a year ago. This means positive news for the sector and mainly for European companies
Banc Sabadell | IAG’s Capital Markets Day focused on cash generation. The reduction of some operational objectives (AKO’s 2020/23 growth from + 6% to + 3.4% per year; annual BPA growth from + 12% to + 10%), is in line with market forecasts and BS (e) .
BOfAML | We modestly update our forecasts reflecting fuel prices and monthly traffic data reports. European airlines in our coverage have reported 6.5% ASK growth on average in 3Q19 and we look for 3.8% in 4Q19. We expect RASK recovery with flat unit revenues in 3Q19 on average and 1.7% yoy improvement in 4Q19.
Banc Sabadell | IAG results in Q119 in line with expectations in EBIT and better in financing post tax profits: Sales: 5.318 Bn€ (+5.9%); EBIT: 135 M€ (-51.8%); post tax profits: 70 M€ (-66%). Sales evolved slightly below expectations (-0.7% vs BS expected) affected by unitary passenger income after currency change which fell -1.4% (vs -1% BS expected). Thus was compensated by unitary non-fuel costs which fell -0.6% at constant exchange rates (vs 0% BS expected). This poor income performance contributes a certain negative trend.
Renta4 | IAG has published the March air traffic data, which show a beginning to the year similar to the company’s capacity (supply) target for Q119, with demand growing slightly more than supply, and in line with the target for the year of 5.9%.
IAG has decided that any non-EU investor which buys shares from today onwards will have their voting rights suspended and will have to sell them within 10 days. If they do not, IAG itself will buy these shares for repayment at the lowest price.