Hi everyone! Hope you’re all well. Wondering what everyone’s thoughts are on IAG ? With the vaccinations rolling out does anyone share my opinion that BA and others are going to start the recovery process ? Discuss… hopefully :crossed_fingers:t3:

A few other European countries are talking of imposing some lock downs, Portugal being one of the latest and most countries don’t believe everyone will be vaccinated until Autumn/Winter this year so I believe it could get a little worse before it gets better. However with the likes of Norwegian Air…

Interesting. Maybe an IAG drop leading to another investment opportunity? Surely they are going to recover at some point? As for Norwegian air, sounds like one to watch. Thanks for taking the time to reply!

Yeah I believe there may be another slight drop due to the confirmation of the expected class action lawsuit against them for the breach in 2018, a few countries locking down, their EV score shows them as a stock to avoid, they increased their debt to £10bn as per their third quarter results and the…

As expected this is the drop I was expecting to come… I unexpectedly didn’t foresee them to go out and buy Air Europa for €500m which also caused prices to drop slightly. All the charts show bearish signals so we can expect a bit more of a dip to come maybe even to the 125p range that I mentioned, …

I am waiting for the 115-120p level to top up, nonetheless I have about 3% of my portfolio in IAG though and follow it. I think that the Air Europa acquisition is good for the company and bad for customers as it will leave spanish clients with limited choice, particularly on internal flights. They …

Obviously the main risk I see is the debt. Coupled with the fact that it tends to offer “premium” fares compared to Easyjet, Ryanair, Norwegian, etc therefore IAG may take longer to recover than the “cheap” competitors. (Similar situation to KLM-Air France, Lufthansa, etc)

Yeah I agree I think it was a good acquisition and took advantage of Air Europa’s low valuation due to the pandemic. Regarding cashflow I am sure I read yesterday that IAG have six years to disburse the payment for Air Europa shares. Yes debt has increased quite a lot which is what’s causing a lot …

It seems IAG are fairly confident they will be back with a bang. I will certainly be keeping an eye on them to see if they do dip down a bit lower.

Looks like it’s picking up again today

IAG shares on road to recovery ?

💬 Trading 212 chat

Dougal1984 January 26, 2021, 8:18pm 8

We may find that ‘cheap competitors’ may have to hike prices to recover losses so may work to the favour of IAG for already having a setup for a slightly premium service.

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IAG shares on road to recovery ?

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