IAG shares fly in early trading

Once again, CEO Willie Walsh’s hard-line tactics in dealing with trade unions have paid dividends, as the airline conglomerate posts impressive figures.

Fresh on the heels of disappointing figures from both Ryanair and easyJet, International Consolidated Air (IAG) has pleased the markets with a turnaround in costs, passengers numbers and profitability.

After a number of years spent fighting trade unions and uncompetitive work practices in Spain, Willie Walsh has managed to put the company back on track, as he did with British Airways. For the third quarter, Iberia posted a profit of €74 million – a sizable improvement on the €1million it reported a year earlier. Now that the Spanish arm contributes to the group’s profitability rather than being a weight around its neck, operating profit has jumped to €690 million, up from €270 million in the previous year.

An hour into trading, the stock had risen by over 5% and looks set to challenge the year highs set earlier in October. It is worth considering that the share is already up 97% on the year, but with three quarters of the institutional analysts still rating it as a ‘buy’ or ‘strong buy’, it might have scope to take advantage of more blue sky yet.

International Consolidated Airlines Group chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.