International Consolidat... Share Discussion Threads

[nofool] 18/11/2013 14:47

Feeling my way in again. Mindful of the gap a further ten down..

[philanderer] 18/11/2013 14:14

Israel:

El Al, British Airways, Lufthansa sued for price-fixing

Judge slams airlines with heavy court costs to boot.

[philanderer] 18/11/2013 13:44

Fair enough. luck with your short anyway.

At the Investors Day friday IAG said they were hoping to start paying a dividend in 18 months - so we`ll have to wait and see on that one ;-)

[sr2day] 18/11/2013 13:31

this company does not pay a div and we all know how fickle the price of oil can be.so projections of increased profits overstated in my view.one thing is for sure,i would not pay too much attention to the analysts who are as fickle as the oil price.

[philanderer] 18/11/2013 13:13

That`s certainly a contrarian view sr2day ;-)


18th nov UBS buy tp 475p
18th nov Nomura buy tp 380p
18th nov Credit Suisse outperform tp 443p
15th nov Davy outperform -
15th nov Deutsche Bank buy tp 430p
15th nov Investec hold tp 400p


15th nov +++++ Capital Markets Day ++++

[sr2day] 18/11/2013 12:45

below 300p if you are patient.

[skinny] 18/11/2013 12:35

Credit Suisse Outperform 366.85 362.20 443.00 443.00 Reiterates

[allstar4eva] 18/11/2013 12:06

Thanks Phil. Some more realistic target prices being stated now...

[philanderer] 18/11/2013 11:55

Morning nf , UBS raising their target to 475p this morning as well :-)


"UBS, Nomura lift target prices for IAG"

[nofool] 18/11/2013 09:55

morning phil. Doing a grand job.

[philanderer] 18/11/2013 08:44

Davy Research

IAG

18th november

"2015 targets now looking conservative"

DAVY VIEW
IAG's capital markets day on November 15th raised the group's 2015 operating profit target to €1.8bn (EPS ≥ €0.54; ROIC ≥ 12%) from €1.6bn. This is a result of: (i) the impact of Vueling integration and performance, (ii) improved margins in British Airways (BA), which increased the 2015 operating target from £1.1bn to £1.3bn, (iii) Iberia recovery plan on track with improvement expected and (iv) an additional contribution from BA and Vueling growth.

With the EBIT run rate of Vueling at €117m for the last four quarters and improvement by BA on the transatlantic, a recovery at Iberia would lead to additional upside. This could come from further productivity savings beyond the "mediation" agreement and revenue enhancements – the Iberia management team has a track record through Iberia Express in building profitability quickly.

Iberia's LATAM franchise is also likely to be value creative. Challenges include allocating 6% volume on BA's network in 2014 to provide profitable returns. Although we are unlikely to materially change our 2014 targets, we will raise our 2015 operating forecasts to €1.85bn versus the current €1.584bn (i.e. slightly above the guided range).


IAG – dividends likely over the coming 18 months

Full report:

[philanderer] 18/11/2013 08:22

Morning all.

Nomura reiterates 'buy' , increases target from 335p to 380p

[philanderer] 17/11/2013 20:11

sunday:

British warship HMS Daring is due to arrive in the Philippines today as part of the UK's emergency response to the country's devastating typhoon.

Save the Children said a barge carrying more than 25 tonnes of aid items and essential household kits is also expected to reach the Asian nation in the afternoon.

A British Airways jet will leave the UK tomorrow after offering aid agencies including Oxfam, Save the Children and Unicef the aircraft to fly aid and supplies to the disaster zone.

[philanderer] 17/11/2013 14:15

Sunday Times:

BA hit by Heathrow flight delays

One third of long-haul services behind schedule during peak holiday season

British Airways` punctuality at Heathrow slumped over the summer, according to new figures revealing that more than a third of its long-haul flights departed late during the peak holiday season.

Data obtained by The Sunday Times shows that only 66% of its long-haul flights left on time in August, down from 75% a year earlier.

On the carrier's key route to New York's John F Kennedy airport, only 55% of planes departed on time in August - within 15 minutes of schedule. That performance was much worse than the punctuality of competitors, including Virgin Atlantic and Delta Air Lines.

[dac123] 17/11/2013 12:44

The opening paragraph gives you the basic idea, if you want more detail then the whole article is worth a read.

The spread between West Texas Intermediate (WTI) and Brent crude oil represents the difference between two crude benchmarks, with WTI more representing the price U.S. oil producers receive and Brent more representing the prices received internationally. The two crudes are of similar quality and theoretically should price very closely to each other. However, the prices had differed greatly between the two crudes because a recent surge in production in the United States has caused a buildup of crude oil inventories at Cushing, Oklahoma, where WTI is priced. This created a supply and demand imbalance at the hub, causing WTI to trade lower than Brent. Before this increase in U.S. oil production, the two crudes had historically traded in line with each other.

hxxp://marketrealist.com/2013/11/wti-brent-spread-remains-10-per-barrel/

[philanderer] 16/11/2013 19:30

My understanding is that it`s all to do with delivery.... the USA relies on WTI (traded on NYMEX) and with production increasing and transportation improving it trades at a discount to Brent. Another factor is that the east coast of USA used to import Brent but now is changing over to WTI thanks to pipeline and rail infrastructure.

Brent delivery costs far exceed that of WTI.

WTI is primarily for USA use while Brent is for european consumption.

[smicker] 16/11/2013 19:03

Anyone care to explain why the two quoted prices of oil are so different and why we cant take advantage of the Nymex price at 94 dollars?

[nofool] 16/11/2013 18:25

I hadn't noticed a "surge in oil prices". They go up and down like a yo-yo of course.

When the price of Brent pulls back, they'll say "that explains the rally in IAG.".

[philanderer] 16/11/2013 09:37

Scotsman

another take .


Oil prices cast shadow over IAG profit target

The owner of British Airways hoisted its 2015 operating profit target more than 12 per cent to €1.8 billion (£1.5bn) today, but the upgrade was overshadowed by looming fuel cost rises for airlines.

International Airlines Group, which had previously set a target of €1.6bn, said the better financial performance would come from growth at British Airways and a recovery at struggling Spanish flag-carrier, Iberia.

IAG said the improvement would also be aided by efficiencies linked to integrating its budget Spanish airline, Vueling, which it took control of earlier this year.

However, IAG's shares closed down 10.8p, or just under 3 per cent, at 362.2p as the stock market digested the surge in oil prices in the wake of reassuring comments by the incoming boss of the US Federal Reserve.

Brent crude rose 0.4 per cent in London to more than $108 after Janet Yellen, who takes over from Ben Bernanke at the end of January, said the Fed had "more work to do" to help the US economy – suggesting no early scaling back of the American asset purchase programme.

[nofool] 16/11/2013 09:22

Of course phil. A "take profits" week, and quite right too Darias!

..till the next time.

[philanderer] 15/11/2013 23:31

Not sure who was unimpressed but the four broker`s notes released today were pretty positive..

15th nov Credit Suisse outperform tp 443p
15th nov Davy outperform -
15th nov Deutsche Bank buy tp 430p
15th nov Investec hold tp 400p


Seems today was more like a 'sell on the news' day.

[philanderer] 15/11/2013 23:23

Financial Times:

International Airlines Group lifts profit target


The group said on Friday its main focus was on sustaining growth at between 2 per cent and 3 per cent, excluding Vueling, beyond 2015.

Paying dividends was a priority, it said. Willie Walsh, group chief executive, said: "We want to bring business to a position where we can start paying dividends and all of the work we do is with that in mind."

Full article:

[nofool] 15/11/2013 21:02

Try using hTTp next time, for a simple one click link prodman.

"unimpressed" = sarcasm.

(+ good to see status quo get a mention there too lol)