International Airlines Group is flying high on hopes of an agreement between its Spanish business Iberia and unions over productivity improvements.
Shares in the business, which also owns British Airways, are up 6.5p or 1.5% at 432.3p after a report in Spanish newspaper El Mundo that a deal could come this week. Analysts at Barclays said:
Under the headline "Iberia accelerates negotiations to reach labour peace", El Mundo cites company sources claiming that Iberia is attempting to reach a deal with unions in time for a potential announcement at the International Tourism Fair in Spain which is being held in Madrid later this week.
We [recently] outlined a bull case scenario under which Iberia reached a deal with unions and returned to growth, highly leveraged into any potential Spanish upturn.
Meanwhile Nomura was also positive on the airline group, raising its price target from 380p to 474p.
