By Joanna Plucinska LONDON (Reuters) -Global airline traffic recovered to 68.5% of pre-pandemic levels last year and surged 64.4% from 2021, according to figures published by...
By Catarina Demony and Miguel Pereira LISBON (Reuters) - Europe was entering an "inevitable" post-pandemic period of airline consolidation as legacy flag-carriers struggle to...
MADRID (Reuters) - Spanish flag carrier Iberia said on Sunday it had solved an IT problem in the airline's booking and boarding system that disrupted dozens of domestic and...
MADRID (Reuters) - Dozens of international and domestic flights operated by Spanish flag-carrier Iberia were disrupted on Saturday by a problem in the company's booking and...
By Joanna Plucinska and Ilona Wissenbach DUBLIN (Reuters) - German airline Lufthansa's bid for a minority stake in Italy's ITA Airways has ignited talk of further potential sector...
need to cut debt and need to become more profitable in order to keep the shareholders happy
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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.
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How can this seemingly stable although troubled large airline company pay a 35% annual dividend?