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IAG not giving up on Aer Lingus

International Consolidated Airlines (IAG) boss Willie Walsh is keen to continue negotiations with Irish officials over a potential bid for Irish carrier Aer Lingus
March 3, 2015

Dublin officials have said they need "greater assurance" from International Consolidated Airlines (IAG) on job security and growth before they agree to a takeover of Irish carrier Aer Lingus (EIL). IAG boss Willie Walsh - himself an Irishman - said he would meet officials again following the publication of IAG's financial results.

IC TIP: Hold at 581p

These suggest the fortunes of flagging Spanish subsidiary Iberia are finally on the turn. The airline reported operating profits of €50m (£36m) for 2014 - a €216m improvement over the previous year. Capacity grew by 3.6 per cent, but revenues remained flat. That implies lower ticket prices, which management blamed on high levels of market competition. Tellingly for Aer Lingus, Iberia also slashed costs last year - particularly employee costs, which fell nearly 10 per cent to €1.04bn. Fuel, oil and emission costs also dropped 5 per cent to €1.16bn.

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