International Consolidated Airlines Group S.A. ADR (ICAGY)

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ICAGY Comments

need to cut debt and need to become more profitable in order to keep the shareholders happy
Load up on the dip if you’ve got liquidity. IAG’s ($ICAGY) 825 (€) bond issued today is more positive than negative. We all know airlines are now recovering and they’ll need funds to make that happen. The US and France not making the green list this go-round put them in a tough spot. I’m guessing, it forced their hand, but it might even have been done to send a message to government heads. “Hey suits; expand the green list or subject the industry to more pain; making recovery harder, if not near impossible”. Who knows? But the fact is, today’s bond issuance means there’s no further share dilution, and shareholders aren’t directly affected. Sure, they’ll be panic selloffs and stop loss dumps, but the bond isn’t the problem. It’s not even due until 2028. The pandemic will have passed long before then and airlines recovered. The few opportunities this fiasco has offered will pass as well.So, be smart about it and BUY the dips and wait it out.
How can this seemingly stable although troubled large airline company pay a 35% annual dividend?