IAG.L - International Consolidated Airlines Group, S.A.
| Previous close | 212.10 |
| Open | 214.60 |
| Bid | 208.30 x 0 |
| Ask | 208.40 x 0 |
| Day's range | 206.40 - 216.50 |
| 52-week range | 5.58 - 684.00 |
| Volume | 14,140,448 |
| Avg. volume | 25,991,506 |
| Market cap | 4.121B |
| Beta (5Y monthly) | 1.51 |
| PE ratio (TTM) | 1.30 |
| EPS (TTM) | 160.10 |
| Earnings date | 31 Jul 2020 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | 02 Jul 2020 |
| 1y target est | 7.17 |
- Fool.co.uk
As travel resumes, I’d buy this bargain stock to beat the market
International Consolidated Airlines might be a risky and controversial buy, but it’s a bargain stock that in my opinion could outperform the FTSE. The post As travel resumes, I’d buy this bargain stock to beat the market appeared first on The Motley Fool UK.
- Reuters
Spain to disburse $2 billion in aid for transport companies
Spain's government will disburse 1.8 billion euros (1.5 billion pounds) in aid to support transport companies hit by the coronavirus pandemic, transport minister Jose Luis Abalos said on Tuesday. State-owned rail operator Renfe will receive 1 billion euros of the funds via an increase in its debt capacity, while 673 million will be for private transport companies, Abalos said after the weekly cabinet meeting. Air transportation companies have already received funds to help them pay for new safety measures imposed to curb the spread of the coronavirus.
- Yahoo Finance UK
Coronavirus: Airlines end row with government over quarantine rules
Europe’s top airlines were worried the rule would deter British holidaymakers from travelling.
- Reuters
Airlines to drop UK quarantine legal challenge, lawyer tells court
Three of Europe's biggest airlines are to end a legal challenge against the British government after it scrapped its quarantine rule for travellers coming from some of the most popular tourist destinations. A lawyer for British Airways <ICAG.L>, easyJet <EZJ.L> and Ryanair <RYA.I> said that the airlines would end the judicial review of the policy, on the assumption that Britain publishes a list of exempted countries. "On the premise it materialises, we have agreed everything else which needs to be agreed," Tom Hickman, lawyer for the airlines, told the High Court in London, adding he had no reason to doubt it would be published later on Friday.
- Bloomberg
Things Are Terrible at Airbus, But at Least It’s Not Boeing
(Bloomberg Opinion) -- The ink has barely dried on Airbus SE’s announcement that it will cut 15,000 jobs, or about 11% of the workforce, and the French finance minister is already criticizing the cuts as “excessive.” Pushback from governments and trade unions is inevitable when big industrial companies announce layoffs. That’s especially true at Airbus, which has assembly lines on three continents and counts France, Germany and Spain as anchor shareholders.Redundancies are never pleasant and they’re a particular blow in aerospace because employees are usually highly skilled and well paid. Unite, a British trade union, said the loss of 1,700 Airbus jobs in the U.K. was an act of “industrial vandalism.” Airbus hasn’t cut this deep before, but the workforce is fortunate not to suffer even more. The impact of Covid-19 on Airbus’s aircraft-making business has been devastating. In 2020 and 2021, it will probably produce 40% fewer planes than planned. The company has no choice but to scale back. With the coronavirus now ripping through the southern U.S. again, any hope that American and transatlantic air travel would swiftly return to normal has been shot down. The aviation recovery will probably be slow and prone to setbacks. Airlines are cutting their staff numbers too — British Airways, for example, by 30% — and some may not survive the crisis.Instead of attacking the passenger jet manufacturer, Europe’s governments should be grateful that Airbus’s finances and order book were in decent shape before Covid-19 appeared. Its problems are mild by comparison with arch-rival Boeing Co., which is reeling from the grounding of the 737 Max. The American company announced 16,000 job cuts in April, and its balance sheet is in a far worse state.Of course, it stings that most of Airbus’s job cuts will be in France and Germany. Both countries have pledged billions of euros of support for the aviation sector.But at least European states haven’t had to directly recapitalize Airbus. At the end of March the manufacturer had 18 billion euros ($20.2 billion) of gross cash, plus a similar volume of available credit lines. It will burn though lots of money this year — in part because airlines either can’t or won’t take delivery of planes — but Airbus will end the year with only “modest” net indebtedness, according to Standard & Poor’s, which rates the company’s debt a pretty respectable A, albeit with a negative outlook.Contrast that with Boeing, which had $9 billion in negative shareholder equity at the end of March, and $39 billion of indebtedness. Boeing avoided a U.S. government bailout only by issuing a further $25 billion of bonds in April. It may consume an astonishing $16 billion of cash this year, according to a consensus of analyst forecasts compiled by Bloomberg, and its debt is rated only one notch above junk.While Airbus’s comparatively solid finances will help it withstand this unprecedented crisis, they shouldn’t be used as a justification for not facing reality. Using government subsidies to furlough employees only makes sense if you think demand will quickly bounce back. But pre-crisis levels of air traffic probably won’t be reached again until 2023, according to Airbus. Even that might be an optimistic assumption. Airbus revenue won’t fully recover until 2024, analysts estimate.The equity markets have certainly taken a dimmer view of Airbus of late, after it scrapped its 2019 dividend. The company was capitalized at almost 110 billion euros as recently as January, when its assembly lines could barely keep up with demand. Now, the market value has shrunk to less than 50 billion euros.Boeing’s shares, by contrast, have gained more than 90% since their March nadir because of hopes that the 737 Max will return to service. Massive stimulus from the Federal Reserve has helped too. Airbus shares have recovered only 28% during that period. Still, an over-inflated American stock market is one thing, the comfort of the European company’s cash pile is quite another.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Stockopedia
Is the International Consolidated Airlines Sa share price too low?
Good shares at cheap prices are what the very best investors look for. At this time of economic turmoil and market volatility, could International Consolidated...
- Yahoo Finance UK
Coronavirus: British Airways reportedly sacks 350 pilots
The deal is still waiting to be finalised but is a “relief” for the airline, after fears of strikes.
- Reuters
IAG reviewing planned acquisition of Air Europa, says Iberia CEO
International Consolidated Airlines Group <ICAG.L> is reviewing its planned 1 billion euro (892 million pounds) acquisition of Air Europa because of the harsh economic climate caused by COVID-19, the CEO of IAG-owned Iberia was quoted on Sunday as saying. There has been speculation that IAG, which also owns British Airways, could look to walk away from the acquisition of Spanish carrier Air Europa, announced last November, or try to negotiate a lower price. Luis Gallego, CEO of Iberia and due to take over as IAG chairman in September, said in an interview with El Pais newspaper published on Sunday that the deal still made sense but the environment was much more difficult.
- Reuters
British Airways sacks 350 pilots and puts 300 in 'pool' for rehire - The Sun
Once 'pooled' pilots return, operating flight crew members will get 7.5% of their deducted pay back, while the rest of the pay cut will be lost, the report added. British Airways, owned by International Consolidated Airlines Group <ICAG.L>, which also owns Aer Lingus, Iberia and Vueling, said in an emailed statement that "constructive talks are ongoing with (UK pilots union) BALPA to save as many jobs as possible." BALPA did not immediately respond to a request for comment.
- Reuters
Spanish airline Iberia will downsize due to coronavirus: CEO
Spanish airline Iberia will reduce the size of its fleet, the number of destinations it flies to and how frequently as the coronavirus pandemic continues to drag on demand, its chief executive officer said in a newspaper interview. Luis Gallego also told El Pais that Iberia, part of International Consolidated Airlines Group (IAG.L), wants to extend a temporary layoff scheme for workers, known as ERTE, until December. "In Iberia, we will be smaller, but we will exist, something that it is not clear other airlines will be able to say," Gallego said in the interview, published on Sunday.
- Yahoo Finance UK
Coronavirus: Non-essential travel restrictions ease on 6 July
Airlines on the brink of collapse get reprieve with easing of 14-day quarantine rule to certain countries.
- Reuters
In battle against British Airways, trade union goes to investors
The trade union battling British Airways (BA) has met investors in its parent company IAG, seeking to ramp up pressure on the airline over plans to cut staff, pay and conditions. Unite, the union which represents BA cabin crew, has responded by lobbying for law to be changed to allow BA to be stripped of some valuable take-off and landing slots at London's Heathrow Airport if it proceeds with it plans. Sharon Graham, Unite's executive officer, told Reuters it had won significant political backing for its campaign and met investors this week to highlight the risks to BA's profits if it lost key airport slots.
- Reuters
British Airways makes proposal to cabin crew on pay cuts
British Airways, owned by IAG, has made a proposal to its cabin crew that would mean those taking on a corresponding role under its restructuring proposals would be paid at least 80% of their current basic rate, an internal letter said. British Airways has come under fire from British lawmakers who have accused the airline of trying to "fire and rehire" its employees on worse pay and conditions, with trade union Unite saying that some cabin crew are facing pay cuts of 70%. It said employees who stayed on needed to accept "market-competitive pay rates" as it merges three previous cabin crew teams into one.
- Yahoo Finance UK
Coronavirus: EasyJet raises £419m in battle to survive crisis
The budget airline has already announced around 4,500 job cuts, but resumed flights in mid-June.
- Yahoo Finance UK
Coronavirus: Airport luggage firm Swissport slashes 4,500 jobs in UK
Baggage handler Swissport had warned the government's 14-day travel quarantine and reduced furlough grants would lead to job cuts.
- Bloomberg
Spain Weighs Major Boost to $113 Billion Loan Guarantee Plan
(Bloomberg) -- Spain is weighing plans to significantly increase the size of its 100 billion-euro ($113 billion) loan-guarantee fund after the program attracted huge demand from businesses struggling to weather the coronavirus pandemic, according to people familiar with the matter.Officials are considering pledging as much as 50 billion euros in additional guarantees, one person said. Others said the ultimate size depends on how the negotiations unfold. They all spoke on condition of anonymity because the details aren’t public.A spokesman for the Economy Ministry, which oversees the program, declined to comment. Shares of Spanish banks rose Tuesday morning on the report.State-backed loan guarantees are a key feature in the global response to the economic fallout from the pandemic, with governments pledging trillions to help keep businesses afloat. Since Spain launched its program on March 17, banks have financed around 70 billion euros worth of loans –- about 54 billion of which are state-backed. That’s a much greater deployment of loan guarantees than in other European countries.Europe’s fourth-largest economy had one of the continent’s strictest lockdowns in response to the deadly outbreak of the virus. The economy is also greatly dependent on the floundering tourism industry, and its long-troubled labor market could see the jobless rate spike as high as 24% this year, according to central bank forecasts. In a worst-case-scenario, the Bank of Spain expects the economy to contract by as much as 15% in 2020.Across Europe, less than 15% of funds made available by governments through banks as loan guarantees for companies have been used, according to figures from seven of the region’s largest economies compiled by Bloomberg News. That means more than 2 trillion euros could still be deployed as of June 18.Europe Leaves $2 Trillion on the Table in Virus Recession FightIn Spain, the loans are funneled through the Instituto de Credito Oficial, known as ICO, a state finance agency. Most of the guarantees have been used to help support small and medium-sized companies. Some large businesses have also tapped the program. British Airways owner IAG SA borrowed around 1 billion euros through ICO to help its Spanish units Iberia and Vueling weather the collapse in travel demand.In the event of a default, the Spanish government has pledged to back 80% of a loan to an SME and 70% for a large company.When Socialist Prime Minister Pedro Sanchez first rolled out the program, some companies complained that banks were requiring them to purchase other products in order to secure financing, something known as cross-selling.Other business people said banks asked them to personally guarantee the loans, pledging their own homes, for instance. And some executives said the interest rates that banks were charging on the loans was unnecessarily high and not in line with the government’s guidelines.Those complaints from borrowers have, for the most part, quieted down. One reason, according to officials, is that the government has introduced the program in increments of around 20 billion euros each. That has allowed them to make tweaks along the way, detecting initial problems and then admonishing some banks to avoid cross-selling, for instance, in the following tranche.Spain rolled out the final increment of the 100 billion euro program last week, accelerating the conversations to bolster the size of one of the country’s most significant responses to the coronavirus crisis.European Central Bank policy maker Pablo Hernandez de Cos called on Spanish lawmakers on Tuesday to consider extending the loan-guarantee scheme to ensure financing for companies that are likely to remain viable once the acute part of the crisis is over.While larger businesses and those with a lower risk profile have been able to borrow at favorable interest rates without tapping the 100-billion-euro state-backed debt program, some smaller ones could have more trouble accessing funding without public support, he said.“It’s advisable to assess the possibility of having public guarantee mechanisms in addition to those that have already been approved,” Hernandez de Cos, who is also the governor of the Bank of Spain, said during a parliamentary hearing on the post-coronavirus recovery.(Updates with comments from Bank of Spain governor in final three paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Yahoo Finance UK
Mixed signals leave stock markets struggling for direction
Germany's infection rate surged over the weekend, sparking fears of a second COVID-19 wave.
- Fool.co.uk
Are FTSE travel shares like Carnival or International Consolidated Airlines Group cheap enough to buy now?
As we start the second half of 2020, let's look at whether travel shares, including Carnival and International Consolidated Airlines, may belong in long-term portfolios.The post Are FTSE travel shares like Carnival or International Consolidated Airlines Group cheap enough to buy now? appeared first on The Motley Fool UK.
- Yahoo Finance UK
Coronavirus: UK tourists allowed to visit Spain without quarantine
Spain's foreign affairs minister said the rule change was made “out of respect” for 400,000 Brits who have second homes in the country.
- Yahoo Finance UK
Coronavirus: Aer Lingus to axe 500 jobs
Irish airline Aer Lingus blame government for forcing their hand in the axing of 500 jobs
- Fool.co.uk
I think the IAG share price will take off again. Here’s why
The IAG share price is facing severe short-term headwinds. Recovery won't happen until 2023. But could it be the contrarian buy of the decade?The post I think the IAG share price will take off again. Here's why appeared first on The Motley Fool UK.
- Fool.co.uk
Stock market crash: I’d buy these 2 bargain FTSE 100 shares and hold them for 10 years
I think these two FTSE 100 (INDEXFTSE:UKX) shares could offer long-term total return potential after the stock market crash.The post Stock market crash: I’d buy these 2 bargain FTSE 100 shares and hold them for 10 years appeared first on The Motley Fool UK.
- Reuters
Iberia reschedules new Airbus deliveries, to withdraw 14 A340s
Iberia has rescheduled deliveries of Airbus A350 and A320neo aircraft, and plans to withdraw 14 older Airbus A340 jets from its fleet, as the coronavirus crisis curbs air travel. The Madrid-based carrier, part of International Consolidated Airlines Group, will adapt its fleet to suit demand through leasing contracts, the newspaper said, citing internal company information.
- Reuters
IAG airline Level Europe files for insolvency
Austrian short-haul budget carrier Level Europe plans to file for insolvency, it said on Thursday, becoming the latest airline casualty of the coronavirus crisis despite the financial might of parent IAG <ICAG.L>. The small airline, previously known as ANISEC, began operating in 2018. British Airways owner IAG also operates a long-haul airline called Level, which is separate from Level Europe, an IAG spokeswoman said.
- Bloomberg
British Airways Owner IAG Said to Prepare Review of Strategy
(Bloomberg) -- IAG SA, the parent of British Airways, is reviewing its strategy to help reposition the group as it emerges from the coronavirus pandemic, people familiar with the matter said.The company is working with Goldman Sachs Group Inc. and Morgan Stanley to study its future business plan and liquidity needs, according to the people, who asked not to be identified because the information is private. The airline group, which also owns Iberia, is examining options that could include debt or equity fundraising, the people said.Like its peers, IAG has been ravaged by the effective shutdown of air travel brought on by Covid-19, which is expected to result in $84 billion of losses for global airlines in 2020. IAG’s units have borrowed money through state-backed programs in the U.K. and Spain to help weather the downturn.Shares of the company gained 5.9% to 280.20 pence at the close Tuesday in London, giving it a market value of 5.6 billion pounds ($7 billion). Discussions are at an early stage, and the result of the deliberations isn’t certain, the people said.Representatives for IAG, Goldman Sachs and Morgan Stanley declined to comment.IAG and many other airlines have signaled they will need to reduce costs drastically to realign their operations for a future with fewer passengers. BA has already said it plans to eliminate 12,000 jobs, or about 30% of its staff, triggering a political debate over its use of state aid.On Saturday, the U.K.’s Transport Committee released a report accusing BA of using the crisis as an excuse to shed workers even as the state was paying the wages of its employees through a national furlough program. The report drew a swift response from IAG Chief Executive Officer Willie Walsh, who said in a letter to the committee’s chairman that “British Airways is fighting for its survival.”Raising equity would ease cash-flow pressure on IAG, shore up its credit rating and potentially help it pay back government borrowings that have spawned the criticism. Qatar Airways will be key to any fundraising plan, as they’re the biggest shareholder in IAG with a 25% stake, data compiled by Bloomberg show. IAG’s corporate brokers in London are Barclays Plc and Deutsche Bank AG, according to the company’s website.Much of what IAG has raised in recent months has been via short-term debt facilities and those will need to be refinanced, Chief Financial Officer Steve Gunning said on a May analyst call.Lufthansa Chief Executive Officer Carsten Spohr said this month he’s working on plans to slash expenses and sell assets in order to adjust to a shrunken travel market and repay a 9 billion-euro ($10 billion) bailout from the German government. The carrier plans to shrink the fleet by 100 aircraft and has said the moves could result in a surplus of 22,000 jobs.The French government has extended loans and guarantees worth 7 billion euros to Air France-KLM, tying the funds to a reduction in carbon emissions and services on its domestic routes. Air France-KLM said in April it may raise new equity once it has better visibility on post-crisis traffic levels.Other carriers in IAG’s stable include Ireland’s Aer Lingus and long-distance discounter Level. IAG also reached an agreement late last year to acquire Spain’s Air Europa in a 1 billion-euro deal. IAG has been seeking to reduce the purchase price, Bloomberg News reported in April.(Updates with closing share price in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
