Here’s why the IAG share price just popped

April 18, 2024 06:05 PM AEST | By Invezz

Here’s why the IAG share price just popped — Image source: Invezz

Strong EasyJet earnings

IAG, the parent company of British Airways, Vueling, Aer Lingus, and Iberia, has bounced back in the past few days. The recovery accelerated on Thursday after EasyJet, a low-cost airline, published encouraging financial results.

EasyJet said that its passenger numbers increased by 8% in the first half of the financial year. It also reduced its winter loss by about £50 million, bringing the loss before tax to between £340 million and £360 million.

The company expects that its business will continue doing well this year. It noted that summer bookings and pricing were doing well. The management believes that EasyJet will continue being the fastest-growing airline in the region.

EasyJet and IAG are significantly different companies. For one, IAG operates several brands that target different types of companies. EasyJet, on the other hand, is a simpler brand that has a close resemblance to Ryanair.

However, its financial results mean that there is a possibility that the aviation industry is still doing well. IAG will release its financial results on May 10th. Its most recent annual figures showed that it made a record profit in 2023 as demand rose. Its total profit after tax stood at over 2.65 billion euros.

EasyJet’s earnings came a week after Delta published strong financial results. It earnings came in at $380 million, an improvement from the previous $217 million. Revenue rose by 6% to $12.6 billion.

Liberum is upbeat on IAG stock

IAG share price also recovered after a positive note by analysts at Liberum Capital. In a statement, they boosted their outlook for IAG, EasyJet, and Ryanair citing strong tailwinds like pricing and volume.

The statement came a day after Lufthansa, a large German airline issued a profit warning. Analysts believe that IAG is not exposed to the challenges that Lufthansa said like strikes and slower ramp-up capacity.

Further, IAG shares have jumped because of the improving conditions in the energy markets. The price of Brent and West Texas Intermediate (WTI) has dropped to $86.7 and $82 a barrel. If this trend continues, it means that the company will spend lower amounts on jet fuel.

The post Here’s why the IAG share price just popped appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.