A pair of International Consolidated Airlines Group (IAG) executives appear confident that the airline group will overcome the chaos wrought by coronavirus and have bought shares, which have plunged more than a third this year.
IAG airlines, including British Airways and Iberia, have been forced to limit travel to destinations deemed especially vulnerable to the epidemic, with BA halting travel to Italy and the group halting flights to mainland China. IAG full-year 2019 results released in February revealed operating profits of €3.29bn (£2.89bn), representing a €200m drop from 2018, with fuel unit costs for the year rising 9.6 per cent. Owing to the uncertainty presented by coronavirus, the airline group declined to provide 2020 profit guidance. But the International Air Transport Association’s (IATA) latest forecasts estimate puts lost worldwide passenger revenues at $113bn for this year.
IAG non-executive chairman Antonio Vazquez Romero and non-executive director Francisco Javier Ferran Larraz have subsequently bought into the group’s share price weakness. Mr Romero purchased 84,000 shares at €5.344 each on 3 March, in the week after IAG’s results release, at an aggregate cost of €448,896. Mr Larraz bought 144,000 shares at a price of €5.222, also on 3 March, with an aggregate value of €751,968. He subsequently bought a further 85,900 shares at €4.6763 a share on 9 March, at a total value of €401,694. IAG declined to comment on the directors’ dealings.
Peel Hunt analysts forecast full-year 2020 adjusted pre-tax profits and earnings per share of €2.6bn and 101.5ȼ respectively, rising to €2.9bn and 111.5ȼ in 2021.
| Buys | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| International Cons Airlines | Antonio Vazquez Romero | 03 Mar 20 | 84,000 | 465 | 390,600 | Original price €5.344 |
| International Cons Airlines | Francisco Javier Ferran Larraz | 03 Mar 20 | 144,000 | 454 | 653,760 | Original price range €5.218-€5.229 |
| Elementis | Ralph Hewins | 04 Mar 20 | 15,034 | 99.77 | 14,999 | |
| Hammerson | Adam Metz | 04 Mar 20 | 20,000 | 199 | 39,800 | |
| London Stock Exchange | Val Rahmani | 04 Mar 20 | 1,129 | 7,927.28 | 89,499 | |
| Electrocomponents | Simon Pryce | 05 Mar 20 | 10,000 | 611.8 | 61,180 | |
| CLS Holdings | Andrew Kirkman (cfo) | 05 Mar 20 | 50,000 | 269.63 | 134,815 | |
| Tyman | Paul Withers | 05 Mar 20 | 25,000 | 253.95 | 63,488 | |
| Vodafone | Margherita Della Valle (cfo) | 05 Mar 20 | 71,246 | 139.38 | 99,303 | |
| Vodafone | Joakim Reiter | 05 Mar 20 | 71,246 | 139.38 | 99,303 | |
| Devro | Steve Good (ch) | 06 Mar 20 | 30,000 | 161.6 | 48,480 | |
| Sage | Steve Hare (ce) | 06 Mar 20 | 5,000 | 672.2 | 33,610 | Residual holding 362,419 shares |
| Reckitt Benckiser | Harold van den Broek | 06 Mar 20 | 80,000 | 6,000 | 480,000 | |
| Coats | David Gosnell | 06 Mar 20 | 173,410 | 57.37 | 99,491 | |
| Plus500 | Omar Elazari | 06 Mar 20 | 70,000 | 9.427 | 659,890 | |
| Melrose Industries | David Roper | 06 Mar 20 | 541,570 | 183 | 991,999 | |
| Melrose Industries | Simon Peckham (ceo) | 09 Mar 20 | 147,652 | 169 | 249,999 | |
| Melrose Industries | Justin Dowley (ch) | 09 Mar 20 | 145,000 | 170 | 246,500 | |
| International Cons Airlines | Francisco Javier Ferran Larraz | 09 Mar 20 | 85,900 | 4.09 | 351,693 | Original price €4.6763 |
| Domino's Pizza | Ian Bull | 10 Mar 20 | 75,000 | 306.5 | 76,625 |
| Sells | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| London Stock Exchange | Waqas Samad (PDMR) | 04 Mar 20 | 20,890 | 7,899.75 | 1,650,258 |
