IAG CEO on Asia demand, Consolidation & Fuel Prices

Summary

IAG CEO Luis Gallego discusses the temporary nature of extra Asia capacity via Middle East hubs and the potential for industry consolidation in Europe. He emphasizes IAG's strong balance sheet and 15% margin as advantages to pursue M&A opportunities. The interview also touches on the evolving regulatory environment post-Draghi report and the attractiveness of IAG's platform for weaker airlines.

• IAG CEO says extra Asia capacity via Middle East is temporary and not structural.
• He does not see a price war to Asia; Gulf carriers may stimulate demand.
• Some airlines could struggle after summer, creating M&A opportunities.
• IAG has a strong balance sheet and 15% margin, positioning it for consolidation.
• European regulators may become more open to consolidation after the Draghi report.
• IAG's model of preserving brands and networks is attractive to potential targets.
• The CEO views IAG as a platform for consolidation in Europe.
• No specific acquisition targets were named.