Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » Up 27% in May! I’m betting International Consolidated Airlines (IAG) shares will smash the FTSE 100 again
    News

    Up 27% in May! I’m betting International Consolidated Airlines (IAG) shares will smash the FTSE 100 again

    userBy userJune 2, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Image source: Getty Images

    I love it when a plan comes together, and I think that’s happening with my recent purchase of International Consolidated Airlines Group (LSE: IAG) shares.

    I spent much of 2024 mooning over shares in the FTSE 100 airline conglomerate, which looked unbelievably cheap, with a price-to-earnings ratio between three and four.

    It simply looked too good to be true. Especially since travel was beginning to pick up in the aftermath of the pandemic.

    FTSE 100 recovery stock

    International Consolidated Airlines was struggling with a bad case of long Covid, which among other symptoms included massive net debt. But slowly, before my very eyes, the shares taxied towards the runway, then took off.

    Where was I when this happened? Stuck in departures, wondering why I hadn’t booked my seat on board.

    Across 2024, the shares almost doubled, making them the biggest winner on the FTSE 100, and I was not a happy traveller. In fact, I wasn’t travelling at all.

    On 5 January, I foolishly decided to torment myself by working out how well an investor would have done if they’d gambled an entire year’s £20,000 Stocks and Shares ISA on IAG at the start of 2024.

    It turned out they’d have had £39,720. In fact, they’d have slightly more, as the group resumed paying dividends in 2024. The trailing yield of 0.85% would have given them another £170, pushing the total holding towards £40k.

    So what drove the recovery? Last year, saw a resurgence in transatlantic travel, which boosted British Airways and helped offset European flight delays. BA’s margins hit 20%, despite a 14% rise in labour costs. Falling fuel prices helped.

    In January, I decided I’d missed my flight, and would have to cast around for the next great recovery play.

    Enter Donald Trump, with his ‘Liberation Day’ tariffs on 2 April. Global share prices crashed, but few on the FTSE 100 fell as hard or as fast as International Consolidated Airlines.

    Now it’s growing again

    Its exposure to the transatlantic market was a massive plus as the economy picked up, and an equally massive minus when Trump sent shares into a tailspin.

    If the US was doing less business with the rest of the world, that would surely extend to travel between Europe and the Americas.

    And that’s when I saw my chance. The moment Trump hit the pause button on 9 April, I scraped together everything in my trading cash account and threw it at the stock. I wasn’t going to miss my flight for the second time.

    So far, I’m up 27% in short order. As a benchmark, the shares are up 92% over 12 months but they still don’t look too expensive, with a P/E of 6.95. This suggests there may be further to go.

    This will remain a risky stock. Who knows what Trump will do next? The US economy may struggle. Europe isn’t exactly in the flush of health either.

    The airline sector seems naturally volatile – anything from volcanoes to wars, pandemics, and volatile fuel prices can upend revenues, costs, and profits. But for now, I’m happy. I’ve taken my second chance and I’m hoping for a repeat of 2024. Although something tells me that this time, the ride could be a bit bumpier.



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleCan Lloyds’ share price keep soaring? 4 reasons why I think the answer’s ‘NO!’
    Next Article Trump tariffs cut off recovery in private equity dealmaking
    user
    • Website

    Related Posts

    Red-hot NatWest shares are up 306% in 5 years – and its dividend is up 60%!

    June 4, 2025

    Despite strong results and solid earnings growth forecasts, this FTSE high-flyer looks overvalued to me

    June 4, 2025

    How much passive income could £10,000 make me?

    June 4, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d