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International Airlines Group’s shares have soared by almost a quarter over the past month on news of its strong start to the year and an improving tariff picture.
The British Airways owner’s first-quarter figures revealed trading ahead of market consensus. In the three months to March 31, year-on-year operating profit before exceptional items was up by €130mn (£110mn) to €198mn as revenue rose 10 per cent and fuel costs fell.
The group also disclosed orders for 53 new long-haul planes from Airbus and Boeing. Most of these are to replace existing aircraft, but a third will be used to drive growth in core markets.
British Airways chair and chief executive Sean Doyle took advantage of IAG’s recent share price performance when he sold £2.1mn-worth of shares on May 22.
The shares trade on six times forward consensus earnings, half the level of the valuation at Ryanair.
