British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) plans to expand its long-haul network from Vienna with its low-cost carrier Level, Reuters has reported. The news came after the blue-chip group recently launched a new low-cost Level-branded Austrian subsidiary, set to offer flights from Vienna to 14 destinations in Europe.
IAG’s share price has advanced in London in today’s session, having added 0.68 percent to 679.00p as of 13:13 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.09 percent lower at 7,593.49 points. The group’s shares have added more than eight percent to their value over the past year, as compared with about a 2.5-percent gain in the Footsie.
Possible budget long-haul flights from Vienna
Reuters quoted IAG’s chief executive Willie Walsh as saying yesterday that the group was planning to expand its long-haul network from Vienna with its new low-cost carrier brand Level.
“One of the reasons we chose the Level brand to operate from Vienna (is) that we are looking for opportunities to further expand long-haul flights,” Walsh said at a news conference in Vienna to launch Level, noting that a decision on the new routes had not been taken yet, while also adding that the Austrian market was still under represented and under-served.
The newswire further reported that the FTSE 100 group has already ordered more aircraft for its carriers and is currently in talks with Boeing and Airbus about buying more planes for its long-haul fleet.
Analysts on British Airways and Iberia parent
UBS, which rates IAG as a ‘buy,’ set a price target of 765p on the shares last week. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 723.07p on the shares.
IAG is scheduled to update investors on its half-year performance on August 3.