International Consolidated Airlines Group (LON:IAG) carried more passengers last month, the company has disclosed. The FTSE 100 group further saw a recovery at its British Airways unit, following a dip in August traffic.
IAG’s share price has been subdued in London this morning, having lost 0.73 percent to 611.00p as of 09:44 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent higher at 7,479.23 points. The group’s shares have added more than 53 percent to their value over the past year, and are up by some 38 percent in the year-to-date.
IAG disclosed in a statement yesterday that its traffic, measured in revenue passenger kilometres, had increased by 3.1 percent last month, as compared with September last year. Group capacity measured in available seat kilometres rose by 1.3 percent, while premium traffic came in three percent higher as compared with the prior-year period. Traffic at British Airways, which fell in August, rose by 0.9 percent last month.
The traffic update comes after news emerged earlier this week that IAG, which also owns Iberia, Aer Lingus and low-cost airlines Level and Vueling, was interested in acquiring Monarch Airlines’ take-off and landing slots, fleet and crew, as the troubled airline was placed into administration. The British Airways parent is also reportedly interested in parts of insolvent Air Berlin.
In analyst ratings, Deutsche Bank reaffirmed IAG as a ‘buy’ this week, valuing the shares at 680p, while HSBC, which sees the British Airways parent as a ‘sell,’ set a price target of 550p on the stock. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 538.52p. IAG is scheduled to update investors on its third-quarter performance on October 27.