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BUZZ-IAG: on a winning run

Fri, 31st Oct 2014 09:25

** British Airways owner IAG hits 4-1/2 month highsas hikes FY profit forecast after posting jump in Q3 profit.

** Rise in profit driven by tight cost control at co'sBritish Airways and Iberia units helped by introduction of newmore fuel-efficient aircraft.

** Stock up 3.8 pct, top riser on 1.2 pct firmer FTSE 100, extends gains since mid-Oct lows to 28 pct.

** Weaker crude oil provided respite to IAG, recently caughtup in a global sell-off in travel-related stocks on Ebola fears.

** IAG's rosier outlook contrasts with updates this weekfrom Germany's Lufthansa and Air France-KLM.

** Pair under pressure to expand low-cost operations &reduce costs to compete better with budget carriers; IAGbenefits from operating Spain-based budget airline Vueling.

** Strength seen sector-wide though IAG outperforms; AirFrance-KLM up 2 pct, easyJet 1.2 pct firmer, &Deutsche Lufthansa & Air France, both down on theweek, up 0.7 pct & 1.7 pct respectively. (RM: tricia.wright1.thomsonreuters.com@reuters.net)

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