Shares in International Consolidated Airlines Group (LON:IAG) have gained ground in London in today’s session as Credit Suisse reiterated its ‘outperform’ stance on the British Airways parent. In a separate development, Reuters reported that the FTSE 100 group’s chief executive Willie Walsh had signalled confidence that a deal will be done to secure Britain’s flying rights after Brexit.
As of 13:22 GMT, IAG’s share price had gained 1.93 percent to 622.80p, outperforming the benchmark FTSE 100 index which currently stands 0.21 percent higher at 7,161.79 points. The group’s shares have added some 14 percent to their value over the past year, as compared with about a 2.6-percent dip in the Footsie.
Credit Suisse sees IAG as ‘outperform’
Credit Suisse reiterated its ‘outperform’ stance on IAG today, valuing the shares at 721p. WebFG News, however, quoted the analysts as pointing to the potential headwinds the group might end up facing on its major routes as a result of the ownership requirements under the kind of 'Open Skies' agreement currently being negotiated by UK and US officials.
“In our view, the US carriers serving Heathrow (LHR) are likely to be opposed to restrictions on UK-US service levels,” the broker pointed out.
Willie Walsh comments on post-Brexit flying rights
In other IAG news, Reuters quoted the group’s boss Willie Walsh as telling the Airlines For Europe conference that he expected the UK to secure deals to allow planes to keep flying and that he was relaxed about Brexit.
He dismissed a report in the Financial Times this week which signalled that the US had offered Britain a worse deal than it has under the EU-US Open Skies agreement.
“The people who are involved in the negotiations say we’re going to get a deal,” he pointed out, adding that there would be ‘a comprehensive Open Skies agreement.