Consequently, the firm transitioned from a loss of €417 million in the previous year to an operating profit of €1.3 billion. The higher numbers were mainly driven by the lifting of pandemic restrictions, resulting in a surge in demand for leisure travel along with increased fares. The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.
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International Consolidated Airlines Group S.a. (IAG) Share Price
No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser. Measured against the firm’s market-cap of £7.7bn, the debt burden still looks too high, in my view. These liabilities continue to cloud the outlook for growth in the IAG share price. Iberia, or Iberia Airlines, was first formed in 1927 from an investment by private and corporate money.
IAG said that its record first-half profits were thanks to “sustained strong demand across our network and particular outperformance from our Spanish businesses.” That said, IAG’s leverage ratio has halved since last year with net debt now at 1.5 times adjusted EBITDA. This is an encouraging development and further advances could bring the prospect of a dividend reinstatement closer. Considering the strong progress made by FTSE 250 rival easyJet on this metric, the consolidated airline group has to be careful not to fall too far behind its competitors in repairing its balance sheet.
HL accepts no responsibility for its accuracy and you should independently rbi pays interest on crr balances of banks at check data before making any investment decision.
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. Shareholders holding via the Madrid Stock Exchange receive shares and shareholders holding via the London Stock Exchange receive CDIs (CREST Depositary Receipts). As a Spanish Company, IAG shareholders will be subject to the Spanish tax regime in relation to any dividends or gains on IAG shares.
Instead IAG shares traded on the London Stock Exchange are held electronically as share entitlements. The administration of these is handled through the IAG Nominee Service, unless you have arranged for an alternative provider of this service. 5 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for International Consolidated Airlines Group in the last year. There are currently 3 hold ratings and 2 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should “hold” IAG shares.
International Consolidated Airlines Group MarketRank™ Forecast
The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. In addition, the cost-of-living crisis could also keep the IAG share price grounded this year. As sky-high inflation eats away at household budgets, cost-conscious consumers may forget about exotic long-haul destinations in favour of alternatives closer to home. Much of IAG’s success will depend on the macroeconomic backdrop in the run up to the crucial summer period.
With interest rates due to rise further, the cost of servicing this debt is likely to rise this year. This could eat into the firm’s profit margins just as it embarks on a tentative recovery. Get the week’s market-moving news sent directly to your inbox every Sunday. https://1investing.in/ The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch. Sign-up to receive the latest news and ratings for IAG and its competitors with MarketBeat’s FREE daily newsletter.
Lund-Yates also said that “the outlook for business demand is murkier than leisure, and this corner of the market is a lot more important to IAG than it is for the likes of easyJet.” The airline group said that revenues climbed 45% in the six months to June, to €13.6 billion. As a result the firm swung to an operating profit of €1.3 billion from a loss of €417 million a year earlier. Register for Free to get streaming quotes, interactive charts, trades, portfolio, live options flow and more. Please log in to your account or sign up in order to add this asset to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
IBEX 35 Market Update, 03/20/2023: What You Should Know
They can do this by completing the proxy section on the attendance, proxy and remote voting card and sending it in advance to the Shareholder Office or handing it in on the day. At 140p, the IAG share price seems anchored well below its pre-pandemic highs above 400p. However, there are signs a recovery’s beginning to take hold in international travel as passengers return to the skies. This could boost the stock’s upside potential in 2023 and beyond.
As IAG is a Spanish Company, holding shares this way allows shareholders to continue to have the beneficial entitlement of their holding. This not only gives them the ability to trade shares in IAG, the service also ensures they have the same entitlements as a direct shareholding, such as voting rights and attendance at shareholder meetings. For the dividend payment to be made directly to your bank account or for you to receive your dividend in Euros you need to have registered these details with Computershare by no later than 1200 (GMT) on the Record Date.
Please note, you will be required to register a Computershare dealing account before buying or selling CDIs. If you hold your IAG shareholding in the form of ADRs, please direct your queries to Deutsche Bank who are the ADR Depositary Bank. IAG stock has a Moderate Buy rating on TipRanks, backed by five Buy and eight Hold recommendations. The average price forecast is 206.6p, which is 20% higher than the current trading level. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. What’s more, the airline’s also grappling with an €11bn net debt burden.
Accordingly, if I have spare cash, I’ll add the stock to my portfolio this month. Since I already own easyJet shares, I plan on taking a small stake initially as I don’t want to be overly exposed to what is a fairly cyclical industry. Shareholders (holders on the Spanish register) who are named on the register 5 days in advance of the Shareholder Meeting will be entitled to attend the Meeting in a speaking and voting capacity. If you wish to sell your CDIs using a service other than Computershare’s you must first transfer the CDIs to the CREST account of the relevant broker/market participant. Please contact Computershare for all matters relating to a UK shareholding in IAG.
Australia’s IAG reports $4.5bn of Greensill legal claims
If an alternative proxy to the shareholder is nominated, this is the person authorised to vote on behalf of the shareholder. IAG was formed in January 2011 after a merger agreement that made British Airways and Iberia wholly owned subsidiaries of IAG. British Airways shareholders were given 55% of the shares in the new company. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation.
However, there are considerable risks facing the company and I’m not ready to buy shares just yet. Currently, I believe there are better investment options for my spare cash to be found in other UK equities. Nonetheless, I’ll closely monitor developments affecting the airline as the year progresses.
- Lund-Yates also said that “the outlook for business demand is murkier than leisure, and this corner of the market is a lot more important to IAG than it is for the likes of easyJet.”
- The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.
- View analysts price targets for IAG or view top-rated stocks among Wall Street analysts.
- British Airways shareholders were given 55% of the shares in the new company.
Additionally, participants benefit from reduced commission rates when trading, as physical certificates are not involved and administration costs are reduced. CDIs are held electronically so no share certificates will be issued. This avoids the risk and inconvenience of losing the certificate and the costs of replacements. IAG shares traded on the London Stock Exchange are held electronically as share entitlements. Among these, Barclays analyst Andrew Lobbenberg has the highest price target of 245p, which implies an upside of 43.3% in the share price.