Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  International Consolidated Airlines Group, SA    IAG   ES0177542018


Delayed Quote. Delayed London Stock Exchange - 06/05 11:39:37 am
327.5 GBX   +13.64%
01:38pAirbus jetliner deliveries recover some ground in May
12:45pEUROPE : European stocks rack up hefty gains as cyclicals rally
12:45pEUROPE : European stocks rack up hefty gains as cyclicals rally
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

European airlines resist mounting coronavirus refund claims

share with twitter share with LinkedIn share with facebook
share via e-mail
03/27/2020 | 05:04pm EDT
FILE PHOTO: An Air France Boeing 777 aircraft takes off at Paris Charles de Gaulle airport, following the coronavirus disease (COVID-19) outbreak, in Roissy-en-France

European airlines waiting in line for coronavirus bailouts want to tap another source of interest-free loans: their customers.

Cash-strapped carriers are seeking to suspend European Union rules requiring refunds for cancellations and instead issue vouchers to clients left out of pocket as hundreds of thousands of flights are grounded by the pandemic.

Refund claims, if honoured, would be a big additional cash drain on many airlines already in need of government aid to survive a sustained travel slump.

Consumer organisations say some major airlines are already flouting the refund rules and condemn what they describe as an attempt to force consumers to lend them cash.

"We've been absolutely inundated with passengers complaining they can't get a refund from their airlines," Rory Boland of British consumer group Which? said on Friday.

The European Commission has rejected industry calls to relax the requirement in EU regulations to refund cancellations within a week, but the airlines say they are unable to comply.

"Faced with a cashflow catastrophe, many airlines can only offer vouchers in lieu of immediate cash refunds for cancelled flights," their lobby group Airlines for Europe (A4E) said.

A prolonged shutdown would make about 3.5 billion euros ($3.90 billion) of Lufthansa revenue eligible for refund in the second quarter, Citi estimates - ahead of the 3 billion euros at British Airways parent IAG or Air France-KLM, 770 million euros at easyJet and 760 million at Ryanair.

"Basically, we are trying to push as many vouchers as possible, and not allow for cancellations just to be refunded immediately," Lufthansa's finance chief, Ulrik Svensson, told investors last week.

A Lufthansa spokesman said on Friday that refunds remain "possible in principle," but not "within the usual time limits."

EasyJet and British Airways are among airlines that have made it harder to obtain refunds, by disabling them online and offering only vouchers. Twitter on Friday was aflame with customers who had been referred to swamped call centres.

BA and easyJet said cash reimbursements remained available through their contact centres.

Air France-KLM, which like Lufthansa has grounded the vast majority of its flights, is telling clients it no longer offers the immediate refunds required under European law.

Instead it is issuing a customer credit valid for one year that can be refunded only at the end of that period.

"Air France recognises clients would normally receive immediate reimbursement," its website says, blaming exceptional circumstances and "a very high number of refund requests."

Airlines are now asking European authorities to waive refund requirements on condition that vouchers are reimbursable after a minimum of 12 months, an A4E spokeswoman said.

The EU has already relaxed airport slot rules and passenger compensation and will offer airlines more help, Transport Commissioner Adina Valean told Reuters. "But people have to receive their money back if that is what they want."

Consumer groups remain unmoved by the industry's pleas.

"It isn't fair to people who have been left out-of-pocket and may be in financial difficulties themselves," said Boland at Which? - who cited the example of a family denied a refund on their annual holiday booking to Florida.

"The airlines should not be asking to keep that family's 2,000 pounds ($2,480)," he said.

Citi analyst Mark Manduca said airlines must do everything they can to ensure that "fees and taxes and anything that involves complaint money can be held to an absolute minimum during this tough time."

But he added: "As a voucher holder, you end up effectively becoming an unsecured creditor of an airline."

By Laurence Frost

Stocks mentioned in the article
ChangeLast1st jan.
AIR FRANCE-KLM 12.48% 5.568 Real-time Quote.-50.12%
DEUTSCHE LUFTHANSA AG 5.48% 10.87 Delayed Quote.-37.20%
EASYJET PLC 6.99% 891.2 Delayed Quote.-41.52%
RYANAIR HOLDINGS PLC 0.70% 12.93 Delayed Quote.-12.24%
share with twitter share with LinkedIn share with facebook
share via e-mail
01:38pAirbus jetliner deliveries recover some ground in May
12:45pEUROPE : European stocks rack up hefty gains as cyclicals rally
12:45pEUROPE : European stocks rack up hefty gains as cyclicals rally
12:02pUK shares close at near three-month highs, mark strong weekly gains
10:17aIAG PENCE : Receives a Buy rating from Deutsche Bank
10:05aBA owner considers legal challenge to UK quarantine as relations fray
10:04aBA owner considers legal challenge to UK quarantine as relations fray
09:02aSouth Africa's Comair intends to cut fleet in half
06:41aGlobal stocks and euro gain ahead of U.S. jobs report
06:09aGlobal airlines add flights; U.S. carriers target the great outdoors
More news
Sales 2020 13 029 M 14 706 M 14 706 M
Net income 2020 -3 309 M -3 735 M -3 735 M
Net Debt 2020 13 546 M 15 290 M 15 290 M
P/E ratio 2020 -1,63x
Yield 2020 -
Capitalization 6 505 M 8 273 M 7 342 M
EV / Sales 2019
EV / Sales 2020 1,54x
Nbr of Employees 64 642
Free-Float 74,3%
Duration : Period :
International Consolidated Airlines Group, SA Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends INTERNATIONAL CONSOLIDATED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 18
Average target price 3,97 €
Last Close Price 3,28 €
Spread / Highest target 61,2%
Spread / Average Target 21,4%
Spread / Lowest Target -32,1%
EPS Revisions
William Matthew Walsh Chief Executive Officer & Director
Antonio Vázquez Romero Chairman
Stephen William Lawrence Gunning Chief Financial Officer & Executive Director
John Gibbs Chief Information Officer
Kieran C. Poynter Independent Non-Executive Director
Sector and Competitors