18 NOVEMBER 2013


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Article from BTNews 18 NOVEMBER 2013

IAG Capital Markets briefing

On Friday (15 November) IAG shares finished at 362.5p on the London Stock Market, that is 20p down on the week, but twice that of 12 months ago.

The interest in the shares follows a Capital Markets briefing where Chief Executive Willie Walsh expressed great confidence for the airline operator that owns British Airways, Iberia and the Spanish short haul carrier Vueling.  There are still concerns regarding Iberia however.

Mr Walsh said that IAG had raised its 2015 operating profit goal to €1.8bn from €1.6bn citing savings from integrating  Vueling, which it took control of this year, improved margins at BA and an improvement at Iberia.  These figures contrast with those of Lufthansa and at Air France-KLM, the essentially French dominated airline struggling with serious problems at CityJet, and partner Alitalia where its financial interest is being reduced to just 10%.

Last week, IAG reported a doubling in first-half profit and said passenger traffic rose 8.9% year-on-year in October.  The news in today’s BTN (see American Airlines – US Airways merger) that the creation of the world’s largest airline, and a partner on the highly lucrative transatlantic routes, is likely to happen should help IAG’s Stock Market performance this week. www.iairgroup.com

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