Fusiones y Adquisiciones

🛫 Wizz Air, Hungary's low-cost airline, projects 2023 revenues of €350-450 million, falling short of the expected €500-600 million. This resulted in an 18% stock market value drop, the largest since the pandemic. To maintain service on popular routes, the airline leased planes with crews due to Pratt & Whitney engine repairs, incurring significant costs. The engine manufacturer may cover some losses, with issues persisting for 2-3 years. CEO Joszef Varadi anticipates ceasing plane rentals by summer's end, lessening financial impact.

🏩 Juan José Hidalgo, presidente de Globalia, expressed joy over the failed acquisition of Air Europa by Iberia, which he sees as beneficial for competition in Spain and specifically Madrid. The nearly five-year negotiation concluded without a deal, which Hidalgo believes will save Spanish citizens money. He promises Air Europa will continue to compete with IAG, who has received government support. Hidalgo states Air Europa will repay its ICO loan soon, holds over €250 million in bank funds, and plans to renew its fleet, including adding 787-900 aircraft and updating 737-800s, forecasting the repayment of SEPI debt within two to three years.

🛫 Iberia's strategy to integrate Air Europa aimed to boost Barajas as a hub to Asia. Geopolitical tensions, such as wars between Russia and Ukraine, conflicts involving Israel, Hamas, and Hezbollah, and China's economic slowdown, challenged the project's immediate viability. European airlines' flights to Asia are hindered by Russia's airspace closure, giving Asian airlines a competitive edge. Iberia surprised with new routes to Doha and a return to Tokyo on October 27, 2024, after ceasing operations in 2020 due to the pandemic. However, the Russian invasion of Ukraine, turmoil in the Middle East, and China's economic fragility pose obstacles to Madrid Airport's growth as a hub between America and Asia.

🛫 Grupo Abra and Spanish airline Volotea terminated their agreement on June 25 to acquire Air Europa routes from IAG, after Iberia informed the European Commission it would not purchase Air Europa. Volotea, led by Carlos Muñoz, aimed to establish a strong base in Madrid, serving over 130 destinations in Latin America and the Caribbean, plus 20 in Europe starting in the first quarter of 2025. The deal's collapse forces Volotea to continue its growth organically through new aircraft and routes.

✈️ Iberia's potential failure to acquire Air Europa may soon be confirmed due to European Commission obstacles. The failed integration could significantly impact the Spanish economy, including a potential €50 million indemnity to the Hidalgo family. Barajas Airport's hub stature is at risk, threatening Spain's business competitiveness and tourism, which accounts for 15.2% of the GDP. Paris leads with 139 intercontinental destinations, while Madrid has 80, aiming for 100. IAG's thwarted plans included 850-1,000 new flight combinations, job creation (1,250-1,800 positions), a €30 million annual increase in Madrid Airport's revenue, and an additional 16,000 tonnes of cargo traffic.

✈ Iberia communicated to Air Europa's main creditors that, given Brussels' reluctance to accept its concessions, it currently leans towards abandoning the acquisition, as multiple sources reported to Preferente. IAG, which holds 20% of Globalia, could openly discuss its intentions soon, wary of a €50 million indemnity pact with the Hidalgo family. The potential deal, once poised to be Spanish aviation's largest, faces collapse amidst concerns over business competition, service quality, Lufthansa's pressure, and a Qatari majority in IAG.

✈ Airbus, the world's largest airplane manufacturer, reported profits in the first six months of the year but saw a 50% decline compared to the same period last year, with 989 million euros counted as expenses by Space Systems subsidiary. Excluding this, Airbus's profits were slightly lower than two billion dollars, contrasting with Boeing's losses. Sales rose by 4% to 28.800 million euros. CEO Guillaume Faury cited space business variations and supply chain issues affecting deliveries, with 327 orders received and 8,585 aircraft pending delivery.

🏨 The Hotel Neptuno, operational since the 1960s and a pioneer in Tenerife's tourism industry, faces imminent demolition by the La Laguna municipality, due to the building's risk of collapse. The demolition will cost 400,000 euros, to be charged to the property owners. The hotel, named after the sea god, hosted tourists from Nordic countries, Germany, and America during its golden age in the 60s and 70s, before its gradual decline.

🏦 Amadeus reported a 20.2% increase in net profit to €650.1 million for the first half of 2024 compared to €540.7 million in the same period of 2023. Revenue rose by 13.4% to €3.052,6 million, with adjusted profit up by 22% to €683.4 million. EBITDA grew 15% to €1.203 million, and operating profit increased by 18.6% to €871.1 million. Free cash flow was €530.3 million, with net financial debt at €2,594.7 million as of June 30, at 1.15 times EBITDA. Revenue by segment: Air Distribution rose by 10.7% to €1.506 million, Airline IT Solutions by 17.6% to €1.061 million, and Hotels and other solutions by 13.2% to €485.6 million. A dividend of €1.24 per share was distributed, representing 50% of the 2023 consolidated profit, with €193.4 million paid on January 18, 2024, and a complementary dividend of €0.80, totaling €348.5 million, paid on July 4.

💰 TUI successfully issued convertible bonds worth €487 million to strengthen its financial structure, with a 7-year maturity and a fixed interest rate of 1.95% per annum, payable semi-annually. This reduces the KfW line of credit debt from €550 million to €210 million. Bonds can be converted into TUI shares at an initial conversion price of €9.60, a 50% premium over the reference price of €6.40 per share. The maturity date is set for July 26, 2031. Global coordinators include BofA Securities Europe SA, HSBC, and others.