IAG soars on news of Qatar tie up

published 2 October 2012

International Consolidated Airline Group (IAG) is up 4.5p following reports that Qatar Airways is joining the oneworld Alliance of global airlines.

An announcement is expected next Monday, although neither Qatar Airways nor IAG has yet confirmed this.

Consensus estimates are that IAG, formed from the merger of British Airways and Iberia, will deliver a pre-tax loss of approximately £140m on turnover of £17.6bn, demonstrating the poor economics of this industry and the necessity of cutting costs.