IAG.L - International Consolidated Airlines Group, S.A.
| Previous close | 552.20 |
| Open | 548.40 |
| Bid | 547.60 x 0 |
| Ask | 547.80 x 0 |
| Day's range | 543.60 - 550.00 |
| 52-week range | 5.58 - 667.80 |
| Volume | 5,908,646 |
| Avg. volume | 9,360,815 |
| Market cap | 10.886B |
| Beta (3Y monthly) | 0.77 |
| PE ratio (TTM) | 3.43 |
| EPS (TTM) | 160.10 |
| Earnings date | 26 Feb 2020 - 2 Mar 2020 |
| Forward dividend & yield | 0.25 (4.56%) |
| Ex-dividend date | 2019-11-28 |
| 1y target est | 7.17 |
- Reuters - UK Focus
UPDATE 2-Norwegian Air to end routes from Sweden, Denmark to U.S, Thailand
Budget airline Norwegian Air is ending flights from Copenhagen and Stockholm to the United States and Thailand due to weak demand and technical problems affecting the engines on its Boeing 787 Dreamliners, it said on Wednesday. Flights between Oslo and the United States would continue, while routes between Norway and Thailand were under review, it said, the latest initiative to cut costs and restore profits after rapid expansion left the carrier weighed down by debt. "Scandinavia isn't big enough to maintain intercontinental flights from Oslo, Stockholm and Copenhagen," Senior Vice President Commercial Matthew Wood said in a statement.
- Simply Wall St.
International Consolidated Airlines Group, S.A. (LON:IAG) Looks Interesting, And It's About To Pay A Dividend
International Consolidated Airlines Group, S.A. (LON:IAG) is about to trade ex-dividend in the next 4 days. Investors...
- Reuters - UK Focus
UPDATE 2-British Airways, pilots' union agree preliminary pay deal to end dispute
British Airways and its pilots' union BALPA have reached a preliminary agreement to end the pay dispute that resulted in the first walkout by pilots in the airline's history, the union said on Friday. BA, part of International Consolidated Airlines Group , said in September that the strikes had cost it 137 million euros ($151 million).
- Reuters
British Airways, pilots' union agree preliminary pay deal to end dispute
The agreement came after the two sides held talks under the auspices of the ACAS arbitration service. BA, part of International Consolidated Airlines Group , said in September that the strikes had cost it 137 million euros ($151 million).
- Yahoo Finance UK
British Airways blames 'technical issue' as thousands face delays
The airline said that its teams were 'working hard' to resolve an issue that will cause knock-on delays for passengers on Thursday.
- Reuters - UK Focus
UPDATE 1-British Airways says technical issues delay some flights
British Airways said some flights were delayed on Thursday due to an unspecified technical issue which forced it to cancel some flights a day earlier. The airline has suffered three major computer failures since 2017, the latest of which seriously disrupted operations in August. British Airways in July was fined $230 million for a huge customer data breach and in September was hit by its first ever pilot strike.
- Reuters
British Airways says technical issues delay some flights
British Airways said some flights were delayed on Thursday due to an unspecified technical issue which forced it to cancel some flights a day earlier. The airline has suffered three major computer failures since 2017, the latest of which seriously disrupted operations in August. British Airways in July was fined $230 million for a huge customer data breach and in September was hit by its first ever pilot strike.
- Reuters - UK Focus
British Airways flights delayed by technical issues
Some British Airways flights were delayed by a technical issue on Thursday, the airline said, in the latest setback for the British flag-carrier. "Our teams are working hard to resolve a technical issue which is affecting some of our flights," British Airways said on Twitter in response to a passenger who had been delayed by 22 hours. The airline has suffered three major computer failures since 2017, the latest of which seriously disrupted operations in August.
- Reuters - UK Focus
UPDATE 4-Norwegian Air appoints industry outsider as new CEO to lead restructuring
Loss-making Norwegian Air has appointed Jacob Schram as chief executive to take charge of the budget carrier's restructuring as it struggles with a low-cost, long-haul model in an overcrowded industry. Schram, who does not have a background in aviation, joins Norwegian from management consulting company McKinsey and was previously a top executive in the petrol retail industry, Norwegian's board said on Wednesday.
- Fool.co.uk
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- Reuters - UK Focus
CORRECTED-Ex-British Airways executive indicted over alleged JFK Airport bribery scheme
A former British Airways executive who oversaw the carrier's operations at New York's John F. Kennedy International Airport has been indicted for accepting bribes to help a ground handling company win contracts, New York's attorney general said on Tuesday. The charges announced by Attorney General Letitia James against Steven Clark, who she said directed British Airways operations at JFK Terminal 7, arose from "Operation Greased Runway," a probe into contracting and procurement at JFK. Jeff Kinsella, a former chief executive of Ground Services International (GSI) accused of making improper payments to Clark, was also charged in the case.
- Reuters - UK Focus
EasyJet seeks to "do the right thing" offsetting emissions, critics say fly less
EasyJet's pledge to offset its carbon emissions isn't the end of its efforts to clean up its act, the budget airline's chief executive said, adding it will look into hybrid and electric planes amid criticism the aviation sector isn't doing enough. On Tuesday, easyJet said it would become the first major airline to achieve net-zero carbon emissions across its whole network through offsetting of its flights. The aviation industry accounts for over 2% of global greenhouse gas emissions, and if left unchecked emissions are expected to rise as passenger and flight numbers increase.
- Fool.co.uk
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- Reuters - UK Focus
UPDATE 3-EasyJet to offset carbon emissions for all flights
Britain's easyJet is implementing plans to become the world's first major airline to operate with net-zero carbon across its flight network, the budget carrier said on Tuesday as it also flagged improving bookings after a tough 2019. In addition to the plans to offset emissions from flying, the company also announced that it would launch easyJet Holidays in Britain by Christmas, offering its own beach and city breaks after the demise of tour operator Thomas Cook. Airlines have come under increasing pressure to reduce emissions in the face of the growing "flight shame" movement, formed in easyJet boss Johan Lundgren's native Sweden.
- Reuters - UK Focus
CORRECTED-UPDATE 2-Sales of grounded Boeing 737 MAX gather pace at Dubai Airshow
Boeing's 737 MAX took centre stage at the Dubai Airshow on Tuesday as airlines announced plans to order up to 50 of the jets worth $6 billion at list prices despite a global grounding in place since March. Kazakhstan flag carrier Air Astana said it had signed a letter of intent to order 30 Boeing 737 MAX 8 jets for its FlyArystan subsidiary. Air Astana, which operates Airbus and Embraer jets in its main network, said it was confident in Boeing's ability to resolve problems with the MAX.
- Skift
Airlines Still Think They Can Offset Their Way Out of Climate Catastrophe
It used to be the case that airlines could skirt around the issue of their environmental impact. Sure, most people knew that in some way getting on a machine powered by fossil fuels was probably bad, but it wasn’t front of mind. Today things are very different. The world is getting warmer thanks to human […]
- Bloomberg
Airplanes Aren’t Selling Like They Used To
(Bloomberg Opinion) -- Airplanes just aren’t selling like they used to.Monday marked the second day of the Dubai Air Show, and while there was the usual smattering of headlines with big-dollar figures, there was also fresh evidence that the robust aerospace cycle that’s propelled the industry’s stocks to new highs is getting long in the tooth. Carriers including Emirates and Etihad Airways rejiggered orders at the Air Show as they sought to adapt to a global growth slowdown and weaker demand for travel in the Middle East amid stubbornly low oil prices. This follows similar rethinks at British Airways-parent IAG SA and Deutsche Lufthansa AG earlier this month, with both carriers seemingly pushing out or putting on hold orders for Boeing Co.’s 777X wide-body model. The general takeaway is that the world doesn’t need as many planes right now as airlines might have thought just a few years ago, especially when it comes to the biggest jets used for long-distance international flights. The 777X in particular appears to be in trouble, with launch customer Emirates also reportedly contemplating cutting or delaying its order for 150 of the jets, perhaps in part by swapping in some of the smaller 787 Dreamliners. The Middle East is one of the more attractive markets for the 777 model, which is too big to fly in many other regions. So if airlines there are balking, then production rates may need to come down. Complicating things is a delay in the first deliveries of the 777X until 2021 due to durability issues with a General Electric Co. jet engine. Emirates chief Tim Clark has made it clear he’s fed up with a pattern of delayed rollouts, or worse, post-delivery glitches that force costly groundings, and the delay could factor into any decision. Stanley Deal, who took over as head of Boeing’s commercial airplanes division in October following the ouster of Kevin McAllister, told reporters over the weekend that the company was still in talks with Emirates on the 777X and a still yet-to-be-confirmed order for 40 Dreamliners. “Long term, the 777X’s value remains intact,” Deal said.Boeing has also trimmed its production targets for the Dreamliner after expected orders from China failed to materialize. Etihad Airways said at the Dubai Air Show that it will take 20 fewer Dreamliners over the next four years than originally planned as it grapples with eye-popping losses. Airbus SE models weren’t spared from weakening demand, either. Emirates finalized a $16 billion order for 50 Airbus A350 widebody jets — more than it had committed to in February — but appears to have backed away from an earlier commitment to buy 40 A330neos as well, meaning the total value of the deal before customary discounts is less than originally outlined.The news was better in the narrow-body market. Air Arabia inked a firm order for 120 of Airbus’s A320-model jets. Even Boeing’s troubled 737 Max got some love, with Turkish holiday carrier SunExpress exercising an option to add 10 more of the jets to its fleet. Indian low-cost carrier SpiceJet Ltd. may also seize on the dearth of Max orders as an opportunity to pick up some of the jets at a discount as it contemplates a new hub in the Middle East. In an interview with Bloomberg TV, SpiceJet chairman Ajay Singh wouldn’t rule out signing a deal at the air show, although the size and ultimate timing remain up in the air. Even so, the early returns on the Air Show would seem to be at odds with Airbus CEO Guillaume Faury’s comments last week that aviation demand continues to move “up and up.” Global passenger traffic is indeed still growing, but at a much lower rate than over the past few years. And that matters, because aviation stocks aren’t cheap right now. The SPDR S&P Aerospace and Defense ETF is up 42% so far this year, well outpacing the broader S&P 500 benchmark. The high valuations for aerospace stocks can hold to the extent margins are still on an uptrend and the rebound investors are positioning for in the manufacturing industry plays out, Denise Chisholm, Fidelity’s head of sector strategy, said in a Bloomberg TV interview. At least some airlines, though, are choosing to plan more conservatively.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Reuters - UK Focus
WRAPUP 2-Airbus dominates second day of Dubai show as Boeing wins MAX order
Gulf airlines Emirates and Air Arabia spent a combined $30 billion at list prices on Airbus jetliners as the Dubai Airshow burst into life on Monday, while Boeing won a symbolic first official order for the 737 MAX since its grounding in March. Emirates threw its weight behind the Airbus A350 with an expanded order for 50 jets worth $16 billion, but shelved plans to order the slightly smaller A330neo as the Middle East’s largest carrier embarked on a more diversified fleet structure.
- Fool.co.uk
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- Reuters - UK Focus
UPDATE 2-Wizz Air raises profit forecast, capacity outlook as rivals struggle
Wizz Air lifted the bottom end of its annual profit forecast and further raised its capacity growth outlook, as the budget airline flew more passengers and curbed costs in the first-half, while struggling rivals cut expansion plans. Wizz, which mainly flies to central and eastern Europe, said on Wednesday net profit for the financial year 2020 would be between 335 million euros to 350 million euros ($369.17 million to $385.70 million). Chief Executive Officer József Váradi said the airline was increasing its capacity growth rate to 22%, from 20% promised in July, while net profit for the six months ended Sept. 30 rose 87.1% to 371.5 million euros.
- Fool.co.uk
This dividend stock has outperformed the FTSE 100. Should you add it to your ISA?
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- Bloomberg
Are Passenger Jet Engines Hitting Their Technical Limits?
(Bloomberg Opinion) -- The high-pressure turbine blades in a Trent 1000 passenger jet engine have to withstand temperatures far above the melting point of the nickel alloy from which they’re made. It’s a fiendish technical challenge for the engine’s British manufacturer, Rolls-Royce Holdings Plc — comparable to trying to stop an ice cube melting inside a kitchen oven on full blast. The solution found by the company’s engineers was to blow cool air through tiny holes in the blades. Unfortunately this clever approach has encountered some unexpected problems.Boeing 787 aircraft operated by British Airways, Norwegian Air Shuttle, Virgin Atlantic and others have been grounded in recent months for inspections and repairs because the Trent 1000 engine blades have been degrading faster than anticipated. It’s the type of problem that’s becoming common in the industry as the demands placed on engines become ever greater.The expense of dealing with these things is rising too. Last week, Rolls-Royce quantified the cost of fixing various Trent 1000 issues at 2.4 billion pounds ($3.1 billion), a cash outflow the debt-laden manufacturer can ill afford.Few inventions have done more to transform our life over the past century than jet engines. They’ve let people travel faster and further, and they’re remarkably safe. Passenger fatalities like the one caused by a turbine failure on a Southwest Airlines flight last year are rare. Developed at enormous expense and using innovative new materials, the most recent “powerplants” (to use engines’ industry name) are comparatively quiet and fuel efficient.Yet these innovations have taken the technology closer to its technical limits and reliability issues have crept in. “By pushing the envelope on thrust and efficiency, things have started to go wrong elsewhere in the system,” says Nick Cunningham at Agency Partners. This is worrying because companies are under pressure to build even more efficient propulsion systems to curb carbon emissions. Rolls-Royce’s problems appear the most serious — some 40 787s powered by its engines are parked — but this is an industry-wide issue. Forced to ground planes and adjust flight schedules, airlines have resorted to leasing replacement aircraft and have told engine manufacturers to pay compensation.In September Tim Clark, the boss of Emirates, said manufacturers are delivering aircraft that don’t do what was promised. “Give us airframes and engines that work from day one. If you can’t do it, don’t produce them,” he said.The laws of science aren’t the only thing testing the engine makers. Airbus SE and Boeing Co. have brought several new passenger jets to market in quick succession and their powerplant suppliers have had to ramp up production rapidly. A lot of new demand is from emerging markets where dusty or polluted air can put additional strain on engines.Airbus production was thrown into chaos last year by engine glitches involving Pratt & Whitney’s geared turbofan (GTF) for the A320neo, Airbus’s top-selling jet. More recently the launch of Boeing’s 777x wide-body aircraft was pushed to next year after the premature wearing out of a General Electric engine component.It’s one thing for an engine to miss tough production targets, but quite another for engines to fail once they’re in service. “Engine manufacturers have always had teething problems but in four decades I’ve never seen anything like the list of technical issues they’re been having lately,” says John Strickland, director of JLS Consulting. This month India threatened to ground scores of Airbus A230neo jets operated by domestic carrier Indigo unless the Pratt engines were replaced by the end of January. The warning followed several incidents of engines shutting down in-flight.In October Lufthansa AG subsidiary Swiss temporarily grounded its Airbus A220(1) fleet so the Pratt engines could be inspected after a spate of powerplant failures (the debris from one such incident was recovered from a French forest last week). Since then Canadian regulators ordered the same aircraft not to operate at full power above a specified altitude.About 70% of airlines and lessors surveyed by Citi Research said groundings caused by engine issues were a key concern. Some are looking to operate mixed fleets to lessen the risk of one engine type being grounded. While that’s prudent, it’s more expensive than using a single type of equipment.The risk for engine manufacturers is that reliability issues cost them market share. Earlier this year Air New Zealand switched an order for 787 jet engines to GE after problems with its Rolls-Royce kit. Indigo placed a $20 billion order with the GE/Safran engine joint venture rather buy from Pratt (Pratt claimed the decision was price-related).The problems haven’t affected all new technologies. Rolls-Royce’s XWB powerplant for the Airbus A350 has proven reliable so far. The core gearing innovation underpinning Pratt’s GTF also appears to work as planned; a relief because it cost about $10 billion to develop. There’s more at stake, though, than airline flight schedules and manufacturers’ pride and profitability. As with the car industry, the aerospace sector is gearing up for an epochal effort to curb carbon emissions. Aviation accounts for 2%-3% of greenhouse gas emissions but the sheer volume of plane deliveries in coming years will counteract engine efficiency gains. Aviation’s share could rise to between 10% and 25% by 2050, a Roland Berger study found. Unlike carmakers, the airlines lack viable technological alternatives. Biofuels have potential but fully electric large commercial aircraft are probably decades awayEngine manufacturers are working on still more efficient jet engine designs. Rolls-Royce claims its Ultrafan technology will deliver a 25% improvement in fuel burn compared to the first generation of Trents. Bringing these innovations to market quickly is essential from a planetary perspective but rushing development could prove counterproductive. “My sense is that public opinion in Europe at least is moving quicker than the technology,” says Rob Stallard at Vertical Research Partners.Cunningham is even less optimistic. “Gas turbines are running out of road at just the point where the political impetus is toward greater decarbonization,” he says. “Jet engines are unlikely to get a lot better from here.”(1) The plane was developed by Bombardier Inc and was known as the C-Series before Airbus acquired a majority stake.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis 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/opinion©2019 Bloomberg L.P.
- Bloomberg
British Airways Owner Pares Growth Plan
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.British Airways parent IAG SA will almost halve its planned expansion, reducing expected earnings growth, as it responds to slowing economies and a glut of seats that’s depressed prices.IAG, which also owns Spain’s Iberia, Aer Lingus of Ireland and discount operators Vueling and Level, will now increase capacity by 3.4% a year in the 2020-2022 period, it said Friday. The previous target was 6% through 2023.As a result, earnings per share will rise at a 10% pace instead of 12%, Chief Executive Officer Willie Walsh said in a capital markets day presentation. Capital spending will rise 80% to 4.7 billion euros ($5.2 billion).IAG said Oct. 31 that full-year profit will be lower than forecast as it grapples with the impact of BA’s first pilot strike since 1979. Like other European carriers, IAG is seeking to rein in costs and bolster margins amid a slowing regional economy, diminishing fares and uncertainty surrounding Brexit.Shares of IAG fell as much as 3.2% in London, where the company is based, and were trading 0.7% lower at 540.6 pence as of 3:39 p.m. local time. The stock has declined 6% this year.Fleet TrimmedCapacity growth for 2020 is currently planned to be 3.2%. That compares with 4% for this year, a figure that IAG had revised down earlier.The changes will impact fleet plans, with IAG’s long-haul operations now due to feature 223 aircraft by 2022, 22 fewer than projected last year. That appears to have achieved partly by pushing back deliveries of Boeing Co. 777X planes, Jefferies International analyst Sandy Morris said in a note on the moves.The short-haul division will number 398 jets, down 50 from 2018 estimates, after eliminating 74 mooted orders previously described as “to be decided.” The tally doesn’t include 200 Boeing 737 Max planes that IAG has an outline agreement to buy, since deliveries won’t begin until 2023.IAG confirmed that the Max, currently grounded after two fatal crashes, will be used by BA’s London Gatwick arm and Vueling, and aims to diversify European operations away from Airbus SE to introduce competition for future orders.The company retained its leverage and return on investment targets, as well as an operating margin goal of 12% to 15%.(Updates with impact on fleet from seventh paragraph.)To contact the reporter on this story: Siddharth Philip in London at sphilip3@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
