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Home » Popular Markets » Equities » Will British Airways-parent IAG make an emergency landing?

The multinational airline firm was in for a choppy 2018, taking in all-time highs of £7.27 in late-June and a 17-month nadir of £5.48 in October. The IAG share price eventually closed the year at £6.18, roughly in the middle and 7% lower than where it began.

It picked up the pace in early 2019, nearing £6.70 at the start of February, only to pull back as the month went on. International Airlines Group shares now sit at a current trading price of £6.49 (Spreadex, 21/02/2019).

The company’s third quarter results in October were mainly defined by rising fuel costs, which were up 14.3% for the 3 months to the end of September. This meant that pre-tax profit dipped 0.4% in Q3 to €1.42 billion, though for the year to date it surged 8.6% to €2.45 billion. Total third quarter revenue, meanwhile, climbed 8.5% to €7.14 billion, ahead of the 5.1% growth managed across the 9 month period.

Despite the increase in fuel costs, IAG said at current energy prices and exchange rates, operating profit before exceptional items for the full year would still be around 6.8% higher to €3.15 billion.

More important will be any comment on Brexit, and what plans the firm has in place to avoid trouble post-March 29th. Already one of IAG’s ideas has hit turbulence. The European Union requires airlines to be more than 50% owned and controlled by EU investors to retain flying rights within the region; alongside banning non-EU investors, to combat this the company has also said it would class its UK shareholders as part of the EU, a move the EU itself called ‘totally absurd’.

International Airlines Group shares have a consensus rating of ‘Hold’ alongside an average target price of £7.08

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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