The multinational airline firm was in for a choppy 2018, taking in all-time highs of £7.27 in late-June and a 17-month nadir of £5.48 in October. It eventually closed the year at £6.18, roughly in the middle and 7% lower than where it began.
It picked up the pace in early 2019, nearing £6.70 at the start of February, only to pull back as the month went on. International Airlines Group (LON:ICAG) PLC now sits at a current trading price of £6.49.
The company’s third quarter results in October were mainly defined by rising fuel costs, which were up 14.3% for the 3 months to the end of September. This meant that pre-tax profit dipped 0.4% in Q3 to €1.42 billion, though for the year to date it surged 8.6% to €2.45 billion. Total third quarter revenue, meanwhile, climbed 8.5% to €7.14 billion, ahead of the 5.1% growth managed across the 9 month period.
Despite the increase in fuel costs, IAG said at current energy prices and exchange rates, operating profit before exceptional items for the full year would still be around 6.8% higher to €3.15 billion.
More important will be any comment on Brexit, and what plans the firm has in place to avoid trouble post-March 29th. Already one of IAG’s ideas has hit turbulence. The European Union requires airlines to be more than 50% owned and controlled by EU investors to retain flying rights within the region; alongside banning non-EU investors, to combat this the company has also said it would class its UK shareholders as part of the EU, a move the EU itself called ‘totally absurd’.
International Airlines Group PLC has a consensus rating of ‘Hold’ alongside an average target price of £7.08.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.