Renta 4 gives IAG a boost ahead of its results: “The improvement is consolidated”.
Renta 4 Bank is shown positive regarding the results AGI will be revealed on February 24. The airline, parent company of Iberia, Vueling, British Airways and Aer Lingus, is highlighting its Ibex rising trend since the beginning of 2023 thanks to the good travel and tourism forecasts for the next twelve months. For this reason, the bank expects accounts ” must show the positive tone of the recovery which has been happening significantly since the third quarter of 2022,” says Iván San Félix Carbajo, financial analyst at Renta 4.
“With a capacity of -12% compared to the fourth quarter of 2019, in line with the evolution of demand, we expect ticketing unit revenue to remain at around +9%. and total unit revenue of +10%”, he underlines.
He also believes that unit costs excluding fuel will increase by 4%. and total expenses will increase by 10%.compared to data for the last quarter of 2019.
Taking into account that air traffic is still at lower levels than before the pandemic, San Felix estimates that passenger revenues will be 3% lower than before the pandemic. and that total revenue will be 2% lower “based on non-fuel costs”.
Income 4, which establishes the target price for IAG at 1.90 euros per share. and recommendoverweight‘ safety, it also provides that the EBIT before exceptional itemsthe main operating magnitude, reached €433 million.
He is also confident that the board will achieve its 2022 targets of 78% capacity versus 2019 and EBIT before exceptionals (>€1.1 billion) and a positive tone in the comments in view of 2023..
“We believe the message on stock and price developments will remain positive and… we expect them to announce their outlook for improved EBIT before exceptionals. despite the impact of inflation and projected rising fuel costs,” concludes San Felix.
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