2024-08-02 13:00:28
The market has welcomed IAG’s decision to reverse the purchase of Air Europa, but even more so than results leaving the entire company from profit warning launched in the past few days by his competitors. The shares of the holding emerge by 7% and are the reason for the increases in Ibex which registers decreases. From the Renta 4 analysis department they consider that “it is negative news in the medium and long term although we believe that the decision is right considering that the European Commission has imposed conditions that discourage them from moving forward.”
The airline holding company announced its backed out of buying Air Europa because of Brussels demands, which required more concessions from the market. Decision to pay a penalty of 50 million to Globalia, the group’s airline The group retains 20% of the capital that it does not intend to sell in the short term.
At Intermoney they consider that Iberia “is able to grow organically in Barajas, thanks to the support of its parent company and that they will have new attractive consolidation opportunities in the future”, for example TAP or Easyjet. They also say that the recent approval of the purchase of ITA by Lufthansa after pressure from the Italian Prime Minister, Giorgia Meloni, “could reflect the lack of weight that Spain currently has in Europe.” Bankinter strategists remember that the operation made strategic sense, since it was aimed at “creating a major interregional hub in Madrid, which they will now have to continue to create organically.”
Analyst firms have shown more interest in the quarterly accounts published yesterday after the doubts expressed about the evolution of the sector and the result of the dividend. IAG earned 905 million to June, 1.7% less, but increased its total income by 8.4%, to 14,724 million. “The results are stronger than any of the main competing European airlines” they have published so far, says UBS, after the weakness of the airfares posted by Ryanair or Mr. profit warning from Lufthansa. In addition, it ended five years without dividend distribution by announcing a payment of 0.03 gross euros per share against the 2024 results that will come into effect from September 9. It will involve an outlay of 147 million euros. At Bankinter, they believe that “although the amount is not very high, it is an important step towards normalizing this. That said, some positives: solid results, ending the Ryanair scare and recovering the dividend.”
Intermoney highlights the “solid” results presented by the company, “which exceeded our estimates and consensus, as well as confirming prospects for 2024 in a context where many airlines are cutting their estimates for the full year.” However, analysts say that rates are starting to slow down, although they remain at very high levels if we compare with 2019.” The firm maintains a buy recommendation on IAG with a target price of 2.6 euros per share.
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