Proactive Investors - Shares in British Airways owner, International Consolidated Airlines Group SA, soared 2.5% today boosted by strong results from American Airlines Group Inc. yesterday.
The US airlines share price soared nearly 10% after raising its fourth quarter guidance citing strong demand and high fares boosting others in sector with United Airlines up 7.1%, Delta Air Lines Inc. up 3% and Southwest Airlines Coup 2.5%.
American Airlines said revenue rose as much as 17% in the fourth quarter over the same period in 2019, up from a previous forecast of an 11% to 13% increase compared with the period three years earlier, before the Covid pandemic.
American also said revenue per seat mile likely climbed 24% above the 2019 quarter, higher than its prior forecast of 18% to 20%.
IAG’s share price has performed strongly this year as it is seen as a beneficiary from the reopening of China’s economy which is expected to boost travel and flight traffic.
There has also been speculation that IAG will take part in the expected consolidation within the airline sector as well with reports yesterday that a possible deal for Air Europa could be closed "imminently" while last year the company was tipped as a possible buyer for easyJet PLC.
In London easyJet was trading 3.94% higher, Wizz Air Holdings PLC was up 3.23% while over in Europe, Deutsche Lufthansa AG also took off, trading 2.87% higher.