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Buying IAG Shares: Complete Investment Guide

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When buying IAG shares, the investor decides on one of the main airlines in the world. Arising from the merger of Iberia and British Airways.

The company is one of the leading companies globally in terms of number of destinations, fleet and number of passengers transported.

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✅ Company International Airlines Group SA
⭐️ Ticker IAG
📈 Bag London
⚖️ Isin ES0177542018
💰 Capitalization £ 7.3 mld

If you are thinking of investing in these types of actions, before doing so you must be clear about three important questions:

  • The money that you will dedicate to the investment
  • The investment model that is most attractive or comfortable for you
  • The platform or broker with which you decide to trade

The amount of money to invest should never exceed a figure that you can afford to lose without affecting your personal finances. That is, money left over.

The investment model that we will propose throughout this guide will be contracts for difference, an alternative without commissions, flexible and easy to operate.

IAG Shares Real Time Quote

Here’s the minute-by-minute price for IAG shares, which are listed on the London Stock Exchange.

How to buy IAG shares

When buying IAG shares, the investor will bet on the airline sector, a sector that was severely hit by the effects of the pandemic in 2020, especially from the point of view of passenger transport, where this company is a specialist.

It is true that investment can be considered in different ways, for example, with cash shares, that is, with the participation of the company’s shareholders. However, it is a traditional investment model that requires time, intermediaries and commissions.

What solution? Choose eToro, a Broker that allows you to buy stocks conveniently online and without fixed brokerage costs.

The way to become an IAG shareholder is as follows: register on eToro, access the section with all shares and select IAG. Finally, click on «Buy».

Here we will become shareholders of the company with an initial investment of only € 50.

 

Contracts for difference represent an alternative to this type of investment. First of all, they are flexible tools that are not based on the purchase of the asset. What they allow us is to speculate on how we predict the asset will evolve in the market. In this way:

  • Opening a bullish CFD will represent that we think IAG stocks are going to rise
  • Opening a bearish CFD will represent that we think IAG stocks are going to go down

In addition to the above, some relevant characteristics of this type of product must be taken into account:

  1. Commissions do not apply
  2. They allow to operate in different timeframes, even in just a few seconds
  3. They allow diversification by accessing a huge amount of assets

To invest with this type of tool it is important to select safe, regulated and reliable brokers.

 

Where to buy IAG shares

Investing with CFDs needs safe and reliable brokers. For this, the first factor, as we will see, is regulation.

We must take into account three fundamental keys when selecting a Trading platform:

  • That they are regulated and registered with the relevant regulatory authorities
  • That offer safe and comfortable environments for the user
  • The provision of added values ​​to the user such as demo accounts, automated investment tools, trading signals

Two platforms that meet all these requirements are eToro and Plus 500.

eToro

eToro is one of the main brokers in the market. It has been operating for more than a decade and has been trusted by millions of users as a solid and secure Trading platform. It is regulated in our country registered with the CNMV.

Among the most notable characteristics we can review:

  1. Low spreads.
  2. Large amount of assets to invest.
  3. Automated investment system (copy trading)
  4. Deposit from € 200

The operation is carried out on its own web platform. It is a solid platform, very accessible and really easy to use. Suitable for both veterans and newbies in trading.

 

The Copy Trading that we highlighted as a relevant feature is an automated investment model. It allows you to copy professional investors obtaining the profitability that they obtain since it will be invested exactly as they do. It is a simple and very suitable formula both for those who are starting to invest, and for those who do not have time to develop their own strategies.

The platform also offers a demo account with virtual money. It allows you to test all the functions at no cost and without assuming risk since it operates with virtual money. It can be accessed with free registration on the platform.

 

Plus500

Plus500 is another of the online brokers with the greatest knowledge globally. This is largely due to the fact that it carries out large sponsorship operations, such as the one it carries out with Atlético de Madrid football. But also because it is a solid and safe platform to invest.

As corresponds to a secure Trading platform, Plus500 is a regulated broker that complies with current regulations for the commercialization of financial products. This creates an environment of security and confidence in the operation.

This platform stands out because it offers the possibility of operating on a huge amount of assets. In fact, we are facing one of the Trading platforms with the highest volume of assets, thus creating a very interesting diversification possibility for any investor.

 

Its web platform is a comfortable environment, easily accessible and useful for investors with little experience or for veteran investors.

  • Some relevant features of Plus500 are the following:
  • Wide variety of assets on which to invest with CFDs
  • Comfortable platform to invest with easy access and clear and efficient profits
  • Training and information tools available to the user
  • Possibility of investing from very affordable amounts

On the other hand, in addition to having a demo account that allows you to test all the functions without assuming a risk. It also stands out for having a favorable policy regarding the deposit and withdrawal of money.

 

Buying IAG shares: history and general data

IAG was formed following the merger between the UK’s flag carrier, British Airways, and the Spanish national carrier, Iberia, in January 2011.

British Airways shareholders approved a £ 5 billion merger between their airline and Spain’s Iberia to form the world’s sixth largest airline. Since British Airways was the larger of the two airlines at the time of the merger, the British airline received 55% of the shares in the new company.

With British Airways and Iberia struggling to compete with new low-cost carriers such as easyJet and Ryanair, British Airways CEO Willie Walsh said the merger would not only benefit both companies, but customers as well.

Before the merger, both British Airways and Iberia were expected to post heavy losses, which in BA’s case were forecast to be the largest. The airline had suffered since its privatization.

Due to the fact that they had few overlapping routes, it would allow both airlines to be more competitive with world powers Air France and Lufthansa.

It also opened the door for British Airways to enter Iberia’s South American market. At the time of the merger, BA was only flying to three destinations in South America: Buenos Aires in Argentina and Rio de Janeiro and São Paulo in Brazil.

Iberia, on the other hand, flew to the same three South American destinations as BA, plus another eight.

Since the merger in 2011, IAG has brought Aer Lingus, Vueling and Level under its umbrella, with 573 aircraft flying to 268 destinations around the world.

Buying IAG shares: company evolution

Instead of presenting the results of each airline separately, the group usually publishes the financial statements of all of them at once. As expected, the airline group did much worse in 2020 than in 2019.

After tax, the group posted a loss of 6.9 billion euros ($ 8.4 billion). For comparison, in 2019 it made a profit of 1.7 billion euros (2.1 billion dollars).

The loss was largely due to a huge drop in revenue from passengers. After all, if passengers don’t fly, a vital income tap is shut off. In 2020, passenger revenue fell 75.5%, from € 22.5 billion ($ 27.2 billion) to € 5.5 billion ($ 6.7 billion).

The group received 34 new aircraft in 2020, up from 45 the previous year. These are 15 aircraft of the A320 family, two A330s, seven A350s, four 777-300s, two 787-10s and four Embraer E190s. The airline group has 121 commitments for new aircraft for the future, including the order for 18 Boeing 777Xs.

With more recalls than deliveries, the airline group’s total fleet at the end of the year had fallen 10.9% compared to 2019, to 533 aircraft. This consisted of 367 short-haul jets and 166 long-haul aircraft. Of these 533 aircraft, 241 were temporarily on the ground at the end of the year. Another 71 are pending to be sold or returned to the landlord.

IAG financial data

Data Amounts (USD) Variation%
Income 7,806.00 M -69.40%
Net income -6,923.00 M -503.67%
Box 5,774.00 M +42.15%
Profit margin -88.69% -1,419.79%

IAG competition

We must seek IAG’s competence within the framework of the large airlines:

  • Air France KLM
  • EasyJet
  • Flydubai

In this case, we focus on those that operate with greater activity in the main destinations of the company, discarding some of the North American airlines that, due to traffic volume, could be competition, but are not so much by destination.

IAG Previsiones shares

What are the forecasts for IAG’s share on the stock market? After a 2020 characterized by a pandemic, analysts expect a ” technical rebound ” due to the great collapse of the spring of 2020.

The blockade has kept thousands of planes stopped, which has caused a drop in the turnover and the value of the shares. Even today, the market has not recovered 100%, however the outlook is much more positive than 12 months ago.

According to analysts, the value of IAG shares should reach £ 200 Pound by the end of 2021 , and then consolidate this price level. The goal for the next two years is to reach 400 pounds per share, the value before the crisis caused by the pandemic.

It will take some time, but analysts are confident that IAG and the aviation industry as a whole will recover .

conclusion

When buying IAG shares, the investor is betting on one of the world’s leading airlines. Arising from the merger between British Airways and Iberia, the company is one of the companies with the highest activity and volume of destinations and fleet globally.

2020, as it happened with all airlines, was a tremendously negative year for the evolution of this type of companies due to the paralysis of the sector. However, it is a top-notch company whose shares have remarkable recovery potential.

Throughout the guide we have seen how it is possible to use contracts for difference as an alternative tool for investing in stocks.

It is a flexible instrument, without commissions and that allows you to invest for or against the asset according to its market evolution, since it is not acquired, but rather speculates on its evolution.

It must be operated in the best brokers in the market, in this case in the guide we have analyzed two of the most recognized and secure: eToro and Plus500.

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