International Consolidat... Share Discussion Threads

[m1k3y1] 09/1/2020 10:04

But will it affect the share price ?
Iberia not exactly performing well and this makes IAG a completely Spanish company now !

[demo trader] 09/1/2020 07:53

CEO to retire in June 2020

[ftse_man] 08/1/2020 18:56

Is MH related to MF?.......both sprout absolute rubbish.

[m1k3y1] 08/1/2020 15:59

MF ...complete and utter rubbish.
IAG is still wayyyyy undervalued.

[montyhedge] 08/1/2020 14:58

Totally agree with that article, shareprice to high.

[montyhedge] 08/1/2020 14:54

IAG traffic and capacity report tomorrow for December, normally one of the best months.If they disappoint then below 600p.

[fjgooner] 08/1/2020 01:26

From the article above: "Fuel prices account for about a quarter of IAG’s operating expenses and are its largest variable expense."

So was last year's house ramper lying all along? Surely not?

With Brent above $70, I hope that he wasn't.

[m1k3y1] 07/1/2020 18:36

I wouldn't touch the motley fool either.

[sarkasm] 07/1/2020 15:51

1 FTSE 100 dividend stock I wouldn’t touch right now

Divyansh Awasthi | Tuesday, 7th January, 2020 | More on: IAG
Red siren flashing
Image source: Getty Images.

It has been a rough take-off for International Consolidated Airlines Group (LSE: IAG) in 2020. This is not to say that the company is coming off of a great 2019: its shares were up just 0.8% in the year. However, the surge in crude oil price following the assassination of Iran’s military leader Qassem Soleimani made the beginning of the year a rough outing for the share.

And in my estimation, things are not about to get any easier. Let’s look back a bit before we look forward.
Wake turbulence

For the most part, 2019 was a very difficult time for the British Airways owner. Its share price, which had peaked at 664p in early February, had been pummelled down to 413.5p at the beginning of August – a decline of 38%! The political wrangling in the UK related to Brexit was the chief cause of this decline.

The problems faced by British Airways were a major reason for the decline in IAG’s share price. In July, the airline operator was fined £183 million after data of half a million of its customers was stolen from its website.

British Airways’ long-running dispute with its pilots has also damaged its owner ,both reputability-wise and financially. The strikes by pilots in September led to a cancellation of 2,325 flights and resulted into a loss of £121 million.

IAG’s share did bounce back, though, and from mid-August until mid-December its price surged by nearly 52%!

The results of election in the UK is exactly what the airline operator needed to set itself up for 2020, as the end of uncertainty boosted its share price.
Into rough weather

Sometimes, turbulent times don’t seem to end. So is also the case with British Airways. An annual poll by Which?, whose results were released in December, showed that the airline ranked the second worst in passengers’ opinions. The respondents were dejected by the food and drink quality, seat comfort and value for money across both short and long-haul services. Not a good look for the “world’s favourite airline” as the carrier calls itself. Just four years ago, it was named as the best short-haul airline.

Early in January, AirlineRatings.com released the raking of the world’s safest airlines. British Airways was unable to make it to the top 20; it had made among those ranks last year.

Geoffrey Thomas, Editor-in-Chief of the publisher, cited two reasons why the carrier slipped out of the top 20: the ageing fleet and a high number of non-critical incidents.
Headwinds

Poor customer satisfaction, data privacy issues, and the tiff with pilots (though they have voted to settle their dispute with the carrier) aren’t the only reasons I wouldn’t invest in IAG right now. The rising fuel prices because of aforementioned tensions between the US and Iran are a big factor.

Fuel prices account for about a quarter of IAG’s operating expenses and are its largest variable expense. Combined with the factors mentioned above, they make for a strong case against the airline operator. At about 600p a share, the share is a thumbs down for me.


The Motley Fool UK

[montyhedge] 07/1/2020 11:22

Traffic and capacity report for December reporting on Thursday. Normally one of the best months. Bulls expecting bumper numbers. If they are disappointed then shares could be hit hard. Await with interest.

[wilc42] 06/1/2020 17:28

Well done. You got better prices both ends.

[montyhedge] 06/1/2020 16:19

Thursday 9th Jan, Traffic and capacity report for December.

[dround87] 06/1/2020 15:55

Probably right. Storm in a teacup. But risk is high. Upside pretty modest at this point until resolved. Sell em. Buy back later.

[watfordhornet] 06/1/2020 15:30

Let's hope so - got out this morning near the days low point(just over 600p so timed it poorly. Fingers crossed I can pick up a few % extra if it drops

[montyhedge] 06/1/2020 14:55

I think your get these back at 565p, to many clouds on the horizon.

[cyberian] 06/1/2020 14:29

Have to admit I took most out at between 625p and 635p before the Iran issue, but looking to re-enter as I sense that current issues will calm down with mutual thinking of taking further action will be counter productive. Obviously the share price volatility will increase over the coming weeks but some trading opportunities will remain. We have some load factors etc. coming out in a few days and the dividend yield, and P/E ratio is also a key plus longer term....but be careful.

[badtime] 06/1/2020 11:59

Likewise I got out at 638 after much dithering ...already held BP as an income earner

[montyhedge] 06/1/2020 11:25

Yes good call, oil, talk of 80 dollars, fuel is about 25% of a airline costs, hedging produces a bit of a buffer.

[dround87] 06/1/2020 11:16

Plan. Did the same on Friday.

[montyhedge] 06/1/2020 09:41

We all know how quickly IAG shareprice runs up or down in big movements.If market worries continue this week and it look like it, 565p likely in my view.

[montyhedge] 06/1/2020 08:43

From a trading point of view, if 600p broken, I see 585p, quite quickly. Shareprice was running out of steam at 625p before the brown stuff hit the fan on Iran, oil price hike, some holiday destinations will be off limits, etc.

[wilc42] 06/1/2020 08:36

Run out, obvs

[wilc42] 06/1/2020 08:35

Out first thing. Swapped to BP. Will let this thing ( whatever it turns out to be) rude out. Then swap back again.