I am not sure if you have been on a British Airways or an Air Lingus or an Iberia flight recently, but if you have, I reckon you would have found it a bit busier than last year or the year before. And - especially when you mix it with the lower fuel bills and slightly less general travel sector angst - you will not be particularly surprised to see IAG’s (IAG) first quarter numbers showed it to be profitable for the first time since the pre-Covid world of 2019. And they pushed up their hopes for full year profitability too. So is it time to pile into the shares then?
Did you read the Q4/FY22 numbers from International Consolidated Airlines Group (IAG) this morning? The company, which includes British Airways within its key brands, is back to profit in recent months and even hopes to make nearly a couple of billion euros profit this year. However, despite the improving post-Covid world for the airline group, its shares are down this morning. It is always “good fun” investing in the airline sector.
There are two really busy weeks at this time of year: the last week of October and the first week of November. However, I have noted something else about recent times, a Monday is often a relatively quiet day. So, unlike the Boomtown Rats, I do like a Monday, mainly because I spent almost all of the last weekend playing catch up with the global corporate earnings season. Guess what is going to happen next weekend too… Until I get a bit older and more knackered, anyway. I wrote about International Consolidated Airlines Group (IAG) aka the previous British Airways last Friday, but I see The Times reports today that the “British Airways owner looks to snap up rivals as easyJet (EZJ) falters”.
International Consolidated Airlines Group SA (IAG) aka the stock you and I used to call British Airways, saved my backside a few months ago. To be precise, I am sure the Gibraltar tourist board and/or a Spanish train company would have preferred me to be stuck thankis to Easyjet (EZJ) - with my eldest daughter - in the British Overseas Territory and a city located at the southern tip of the Iberian Peninsula, but IAG / BA stepped up in a timely (although slightly expensive) manner. So, I have become a bit more of a fan (albeit that I do not currently own any shares in the company), which brings me to its third quarter numbers published earlier today…
I haven't posted much these last few days - I've been abroad for the first time since January 2020. What excitement! I'm sure a bunch of you have been to Gibraltar, though I had not. I have two key tips. If, unlike me, you are visiting to explore lower taxation and other matters, do not discuss it in front of others having their breakfast. Second, you must ask yourself whether to fly with British Airways i.e. IAG (IAG) or EasyJet (EZJ). And - if you should prefer the former - whether or not you should hold EasyJet shares.
Over the last five years, £50 has been a regular share price for InterContinental Hotels Group plc (IHG). Given the current challenges, I am surprised that the owner of Crowne Plaza, Holiday Inn, and Regent Hotels & Resorts, has seen its shares recover to their pre-Covid peak. So, whilst they have “seen very positive trading conditions in the first quarter, with travel demand continuing to increase in almost all of our [their] key markets around the world”, they must also hope for “a return of business and group travel".
A “secured a further £1m funding for the Altalto waste-to-fuels project from British Airways PLC and Shell” announcement from Velocys (VLS) – and the shares up from around 2.5p to still well above 3p, capitalising it at well above £20 million...
British Airways currently empliys 4,346 captains and pilots. By Christmas it will have fired more than a quarter of them. And there will be no generous payoffs, just the bare minimum statutory notice period. The Airline says in a letter to the pilots union that if it does not act this way it will threaten its very future. The language is stark and a reminder that anyone predicting a V shaped economic recovery is dreaming.
When no-one was looking, Neil Woodfords’ Equity Income Fund’s (WEIF) Interim Report to June of this year was slipped out. If Neil was hoping nobody would notice he’ll be disappointed as it was picked up by The Sunday Times and Citywire……..and ShareProphets. Readers of the Sunday Times will think that WEIF only lost 11.2% since being suspended as the kids there clearly can't do basic maths. ShareProphets readers know it is far more……
I was due to fly back to Greece on Saturday with British Airways but I did not. It is not for the reason you think, there being no British Airways flights at all out of Heathrow and Gatwick due to an IT bollocks up, but for other reasons equally damning of the airline, now part of International Airlines Group (IAG).
International Consolidated Airlines Group (IAG) has been on a steady upwards trajectory ever since taking a big hit to its share price when the UK voted in favour of Brexit last June, but that rise looks like it is about to hit a brick wall following last week’s debacle involving British Airways.
Andrew Monk does understand travel. Most brokers only understand it in that they collect air miles flying 1st class on expenses on Corporate jollies. Monk did actually run an airline as well as being a top City travel guru in days gone by. Thus his comment today on results from International Consolidated Airlines (IAG), the son of British Airways, are worth heeding.
As one of those terrible foreigners who have come to steal jobs from hard done by Brits, I'm already subject to a fingerprint check every time that I cross the border. Also, I have to use the terrible foreigner line-up instead of the whizzy EU/UK passport line.
Sometimes the best investment calls are made not by looking at spreadsheets but from actually kicking the tyres. Hence I bring you a note in this morning from a broker on International Consolidated (IAG). Over to the broker:
I start this bearcast by being nice to a bunch of folks: the bosses of Nostra Terra (NTOG), Mirada (MIRA), a junior doctor and British Airways. Then I explain why today's news from IGAS is a disaster and heralds the shares being toast. Then take apart African Potash (AFPO) after being goaded by a poltroon on twitter. Finally a final impassioned but reasoned plea to you all to ignore the lies and smears and have faith in yourself and your country and to vote for Brexit tomorrow
It must be a wonderful experience for Willy Walsh who came from Aer Lingus to be putting in a bid for his old company as CEO of his new company. It will also be a situation into which he has insight. Aer Lingus has declined the offer of marriage but could it change its mind.
I have predicted it before but predict again – the imminent trading statement from Thomas Cook (TCG) will be a profits warning. Of that I am certain. My question is whether its self-important and image obsessed CEO Harriet Green gets a one way ticket out of the building the same day.
I have just booked my flight to Athens next week. RyanAir (RYA) was the cheapest flight but once you add in the charge for taking one full suitcase the gap between it and British Airways narrowed. And do I really want to trek out to Stansted rather than go to Heathrow on the tube which is much cheaper for me? The cost gap narrows again. And then O’Leary’s website tried to nickel and dime me on insurance and I just gave up and went with BA.