JohnnyPowell/iStock Unreleased via Getty Images In June-end, we initiated International Airlines Group (OTCPK:ICAGY) (OTCPK:BABWF) coverage with a buy rating supported by: 1. A strong brand portfolio with the ability to compete in long-haul distance (flag carrier peers) and with low-cost operators; 2. A positive outlook thanks to corporate travel demand and a leaner cost structure; 3. An unjustified valuation discrepancy compared to its peers. On 01/08/2024, the company reported its H1 results and was the o ...

Financial Data and Key Metrics Changes - The company reported a profit of just over €1.3 billion for the first half of 2024, an increase of €49 million compared to the previous year [3] - Operating profits before exceptional items were €1.3 billion, with an operating margin of nearly 9% [7] - The leveraged net debt-to-EBITDA ratio improved to 1.1 times, down from 0.6 times in December 2023 [7][18] - Free cash flow generation was €3.2 billion after investing €1.4 billion in CapEx [16] Business Line Data and Key Metrics Changes - Aer Lingus faced challenges with a profit of €9 million, impacted by competitive pressure and pilot industrial action [8] - British Airways improved its operating profit by £59 million, with an operating margin of 8.2% [8] - Iberia delivered €362 million in profit, benefiting from strong performance in Latin America and Europe [9] - Vueling reported an operating result of €97 million, with unit revenue growing by 2.6% [10] - IAG Loyalty achieved an operating result of £193 million, up £23 million year-on-year [10] Market Data and Key Metrics Changes - North America accounted for 31% of capacity, with unit revenue improving by 2% and capacity growth of 6% [11] - Europe, the second largest market, saw unit revenue increase by 1% with a capacity growth of 6% [11] - Latin America and the Caribbean experienced a 17% increase in ASKs, although PRASK declined by 5% [12] - Asia Pacific, the smallest market, saw a 32% increase in capacity but a 14% decrease in unit revenue [13] Company Strategy and Development Direction - The company aims to strengthen its core business and grow capital-light businesses such as loyalty [5][22] - The decision to withdraw from the Air Europa acquisition reflects a focus on shareholder interests and strengthening the Madrid hub [4][22] - The transformation program is expected to drive improvements across all businesses, particularly British Airways [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term future of the business, citing strong demand and supply-side constraints [29] - The company anticipates a capacity increase of around 7% for the full year 2024 [29] - Management highlighted the importance of maintaining a strong balance sheet and disciplined capital allocation [20] Other Important Information - The company resumed paying dividends with an interim payment of €0.03 per share [4] - The total liquidity increased by €1.5 billion to €13.2 billion, reflecting a strong cash position [18] Q&A Session Summary Question: Why did the Air Europa deal not proceed? - Management indicated that despite a generous remedy package, the conditions required were not favorable for the group, leading to the decision to abandon the deal [31] Question: What triggers would lead to returning excess cash to shareholders? - The company considers several factors including leverage, outlook, and alternative uses for cash before making decisions on returning cash to shareholders [32] Question: What is the outlook for pricing in Q3? - Bookings for Q3 are at 81% of expectations, indicating strong demand in key markets despite some weakness in Asia [36] Question: How does the company view its unit revenue performance compared to peers? - The company attributes its strong yield performance to its customer base, market conditions, and ongoing transformation initiatives [41] Question: What is the company's strategy for network restoration and growth? - The company is focused on restoring capacity to pre-2019 levels in most markets, with specific growth plans in Latin America and North America [46][47]

British Airways on Monday announced a massive $9 billion overhaul of its operations that will include a brand new web site and mobile app, renovated airport lounges, artificial intelligence technology integrated into its computer systems, and upgraded first-class seating. "We're on a journey to a Better BA for our people and our customers, underpinned by a transformation program that will see us invest $9 billion over the next three years to revolutionize our business," British Airways' Chief Customer Offic ...

Core Points - JetBlue Airways is seeking U.S. Department of Transportation approval for a code-sharing agreement with British Airways to expand their networks [1][4] - The code-sharing agreement would cover 75 destinations in the U.S. and 17 cities in Europe, enhancing travel options for customers [2] - JetBlue has been increasing its European service, adding flights to major cities, but still lags behind larger trans-Atlantic alliances [3] Group 1 - The proposed agreement would allow customers to book a single ticket for travel on both airlines, facilitating access to a broader range of destinations [4] - This request follows a previous setback where a federal judge invalidated JetBlue's partnership with American Airlines in the U.S. Northeast [4] - The code-sharing strategy is a common approach for airlines to expand their reach in regions where they have limited presence [2]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find compani ...

Boarding1Now/iStock Editorial via Getty Images In Europe, we are seeing mainline carriers such as Lufthansa (OTCQX:DLAKF) struggle in the first quarter after it faced strikes earlier this year and also Air France-KLM (OTCPK:AFRAF) did not have a higher quarter as costs are mounting. International Consolidated Airlines Group or IAG reported first quarter earnings on the 10th of May. In this report, I will be discussing the results and assess whether the stock is still after surging 17.6% since my coverag ...

• Strong demand, higher revenue, increased unit revenue and increased operating profit in Q1 • Investing in our businesses to deliver customer and operational benefits 1 Certain statements included in this document and any related conference call or webcast (including any related Q&A session) are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and uncertainties because they relate to events and de ...

Luis Gallego Sure. Very happy to. Yes, in terms of the BA Holidays question, we think bringing the two businesses together makes a lot of sense there. Two asset-light businesses that are growing very fast and we think we can continue that growth and probably speed it up by bringing the two businesses together and working more closely. So as an example, last year, we allowed customers booking BA Holidays to pay with their Avios to reduce the cost of their trip. And now we see 20% of all bookings on BA Holida ...

International Consolidated Airlines Group SA (ICAGY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ICAGY's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover in ...

International Consolidated Airlines Group S.A. (OTCPK:ICAGY) Q4 2023 Results Conference Call February 29, 2024 5:00 AM ET Company Participants Stuart Morgan - Head of Investor Relations Luis Gallego - CEO Nicholas Cadbury - CFO Sean Doyle - Chairman and CEO, British Airways Adam Daniels - Chairman and CEO, IAG Loyalty Conference Call Participants Conor Dwyer - Morgan Stanley Alex Irving - Bernstein Muneeba Kayani - Bank of America Jaime Rowbotham - Deutsche Bank Harry Gowers - JPMorgan Jarrod Castle - UBS A ...