Market blesses IAG: analysts see breakup with Air Europa as a good suggestion | Financial Markets | EUROtoday

The market has welcomed IAG's determination to again out of the acquisition of Air Europa, however much more so the outcomes that distance the corporate from the revenue warning launched in latest days by its rivals. The holding firm's shares are up 7% and main the rises on an Ibex that’s registering falls. The evaluation division of Renta 4 considers that “it is negative news in the medium and long term although we believe that the decision is correct taking into account that the European Commission imposed conditions that discouraged going ahead.”

The airline holding introduced yesterday that it might not purchase Air Europa because of Brussels' calls for for better concessions to the market. A call that can contain paying a penalty of fifty million to Globalia, an airline through which the group holds 20% of the capital that it doesn’t intend to promote within the quick time period.

At Intermoney, they imagine that Iberia “is capable of growing organically in Barajas, thanks to the support of its parent company, and that in the future it will have new attractive opportunities for consolidation”, corresponding to TAP or Easyjet. They additionally add that the latest approval of the acquisition of ITA by Lufthansa after strain from the Italian Prime Minister, Giorgia Meloni, “could indicate the lack of weight that Spain currently has in Europe”. Bankinter strategists recall that the operation had strategic sense, because it was geared toward “creating a large intercontinental hub in Madrid, which it will now have to continue creating organically”.

The evaluation companies have proven better curiosity within the quarterly accounts printed yesterday after the doubts mirrored within the evolution of the sector and the return of the dividend. IAG earned 905 million till June, 1.7% much less, however elevated its complete revenue by 8.4%, as much as 14,724 million. “The results are stronger than any of the main competing European airlines” which have printed up to now, says UBS, after the weak spot of air fares offered by Ryanair or the revenue warning Lufthansa's dividends have additionally been cancelled for 5 years, with the announcement of a gross fee of 0.03 euros per share on account of the 2024 outcomes, which shall be made efficient from 9 September. This will contain a disbursement of 147 million euros. At Bankinter, they imagine that “although the amount is not very high, it is an important first step towards normalising this. In other words, there are several positive aspects: solid results, it dispels the fears spread by Ryanair and it restores the dividend”.

Intermoney highlights the “solid” outcomes offered by the corporate, “which beat our estimates and those of consensus, in addition to confirming prospects for 2024 in a context in which many airlines are cutting their estimates for the full year.” Analysts do remark, nonetheless, that fares are starting to decelerate, though “they remain at very high levels compared to 2019.” The agency maintains a purchase suggestion on IAG with a goal worth of two.6 euros per share.

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