International Consolidated Airlines Group’s (LON:IAG) British Airways airline is preparing to crack down on perks enjoyed by striking pilots, The Sunday Times has reported. The news comes amid prospects for the airline’s flights likely to be cancelled during a walkout this week.
IAG’s share price has climbed higher in London this morning, having gained 0.38 percent to 423.30p as of 10:06 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.99 percent higher at 7,278.73 points. The group’s shares have given up more than 38 percent of their value over the past year, as compared with about a two-percent fall in the Footsie.
BA to crack down on pilot perks
The Sunday Times reported yesterday that IAG’s British Airways unit was considering removing travel allowances from pilots who take part in the strike amid fears that it will cost the airline up to £40 million a day. The news comes after it became clear that the majority of the airline’s flights are likely to be cancelled during a walkout this week.
The newspaper notes that BA staff with more than six months’ service can buy ‘standby’ tickets for themselves and up to three family members for 10 percent of the full fare plus airport taxes. After five years they are also eligible for an annual business class flight with their family to any worldwide destination, for which they only pay airport taxes.
Analysts on FTSE 100 company
JPMorgan Chase & Co reaffirmed its ‘buy’ rating on the stock last week, without specifying a target on the IAG share price, while Royal Bank of Canada, which is also bullish on the company with a ‘buy’ rating, set a valuation of 650p on the stock. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 643.58p.