Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

International Consolidated Air / Equity Bottom-Up

<p>International Airlines Group (IAG) enjoys the tailwinds of structural demand growth in an industry that is becoming more structurally profitable, being well positioned in some of the largest and most attractive markets, and with a portfolio of leading brands catering to the value requirements of its customers. While IAG already has industry-leading profitability, management is transforming it by investing in network expansion, customer service and operational efficiency to drive sustainable revenue growth and increase free cash flow.</p>

International Airlines Group (IAG) enjoys the tailwinds of structural demand growth in an industry that is becoming more structurally profitable, being well positioned in some of the largest and most attractive markets, and with a portfolio of leading brands catering to the value requirements of its customers. While IAG already has industry-leading profitability, management is transforming it by investing in network expansion, customer service and operational efficiency to drive sustainable revenue growth and increase free cash flow.

International Airlines Group — Come fly with me

Founder & Managing Director, AIR Control Tower, AIR Control Tower

Neil Glynn

Founder & Managing Director, AIR Control Tower

AIR Control Tower

AIR Control Tower is an independent research and analysis platform. Its mission is to provide impactful insight and analysis across the global airline industry at a company and market level via detailed financial models to aid decision making for key stake holders at a time when risks have seldom, if ever, been higher and the global sector grapples with the imperative of funding de-carbonisation. Unique analysis forecasting global carrier-level earnings/cash flows, and restructuring/de-leveraging prospects, is designed to dynamically assess the health of the industry, predict surprises and identify potential requirements for third party support.

Insights on the global airline industry

International Consolidated Airlines Group / Equity Bottom-Up

International Consolidated Airlines Group

<ul>
<li>Following highly challenged 1H24 performances from Air France-KLM and Lufthansa, but strength from IAG, we publish a deep dive on the drivers of divergent performances.</li>
<li>We raise our forecasts at IAG but make heavy cuts at Air France-KLM and Lufthansa, with concerns over their ability to improve over pre-pandemic performances.</li>
<li>This critical juncture, as each carrier implements some type of transformation plan, and carriers around the world see earnings re-set downwards, requires strong governance for expanding portfolios of airlines.</li>
</ul>


Following highly challenged 1H24 performances from Air France-KLM and Lufthansa, but strength from IAG, we publish a deep dive on the drivers of divergent performances.
We raise our forecasts at IAG but make heavy cuts at Air France-KLM and Lufthansa, with concerns over their ability to improve over pre-pandemic performances.
This critical juncture, as each carrier implements some type of transformation plan, and carriers around the world see earnings re-set downwards, requires strong governance for expanding portfolios of airlines.


European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements

<ul>
<li>We publish quarterly earnings bridges through 1Q-4Q24 for Air France-KLM, IAG and Lufthansa, which illustrate 1Q will be difficult yoy.</li>
<li>This renders forward commentary extremely important and summer pricing prospects are encouraging. Delta kicks off airline reporting season globally on 10 April and is likely to set a bullish tone</li>
<li>However the European low cost carriers easyJet, Ryanair and Wizz Air are seeing greater earnings momentum than the flag carriers given short haul fare strength.</li>
</ul>


We publish quarterly earnings bridges through 1Q-4Q24 for Air France-KLM, IAG and Lufthansa, which illustrate 1Q will be difficult yoy.
This renders forward commentary extremely important and summer pricing prospects are encouraging. Delta kicks off airline reporting season globally on 10 April and is likely to set a bullish tone
However the European low cost carriers easyJet, Ryanair and Wizz Air are seeing greater earnings momentum than the flag carriers given short haul fare strength.


European Airlines – Bridging Flag Carrier 1Q24 and 2024 Prospects

<ul>
<li>We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.</li>
<li>We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic</li>
<li>This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.</li>
</ul>


We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.
We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic
This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.


European Airlines – The Ravages of Increased Earnings Seasonality

United Kingdom

International Consolidated Airlines Group S.A. provides transportation services. The Company offers international and domestic air passenger and cargo transportation services. International Consolidated Airlines Group serves customers worldwide.

International Consolidated Airlines Group (IAG LN)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

International Consolidated Airlines Group (IAG LN)

International Airlines Group — Come fly with me

International Airlines Group (IAG) enjoys the tailwinds of structural demand growth in an industry that is becoming more structurally profitable,...

Edison Investment Research

International Airlines Group — Come fly with me

International Airlines Group (IAG) enjoys the tailwinds of structural demand growth in an industry that is becoming more structurally profitable,...

Edison Investment Research

European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements

Deep dive into the divergent economics of each airline within the expanding European network carrier groups AF-KLM, IAG, Lufthansa to illustrate...

Neil Glynn

European Airlines – Bridging Flag Carrier 1Q24 and 2024 Prospects

Deep dive on quarterly earnings prospects for the European flag carriers through 2024 illustrates 1Q difficult and forward commentary crucial to...

Neil Glynn

European Airlines – The Ravages of Increased Earnings Seasonality

Deep dive into winter loss-making for the European airline sector, with structural changes due to corporate traffic loss and inflation. These...

Neil Glynn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)