The main message of British Airways parent International Consolidated Airlines Group's (LSE:IAG) investor event was "never change a running system" or "more of the same", according to different analysts.
IAG shares were up 2.5% to 159.4p on Wednesday afternoon, the second day of the capital markets day event.
Analysts from Stifel and UBS were among those providing their thoughts on the CMD.
Overall, UBS thought it was "one of more of the same" as the last CMD in 2019 but "the strategy and vision for the group is clear", which in short seems to equate to "clear targets which should lead to returns to shareholders".
Talks on the "vision" from IAG's individual divisional heads were summarised thus by UBS: BA - deliver on transformation and maintain leadership; Aer Lingus - bigger, better and more sustainable; Iberia - consolidate customer experience and leadership in core markets; Vueling - leading low-cost carrier in the market.
Hailing the message as "never change a running system", Stifel noted that the mid-term EBIT margin target was the same pre-Covid 12-15% level re-instated, though the Spanish businesses of Iberia, Vueling and Level are expected to double EBIT contribution compared to pre-Covid levels.
While no explicit free cashflow guidance was provided, both analysts noted that capital expenditure in the next three years will amount to €4.5 billion a year, "which is higher than before", said Stifel, including increased investments into customer experience at twice the pre-Covid average, especially at BA, fleet investments of around €9 billion and other investment needs such as IT.
Management "refrained" from reinstating dividend payments at this stage, Stifel noted but "once those investments are provided and balance sheet strength is secured, the company will commit to return being a reliable dividend payer, plus special shareholder returns in absence of M&A."
Of the £7 billion-plus of investment earmarked for the ongoing transformation of British Airways, special attention is to be paid to improving resilience and punctuality, which the analysts noted has been especially damaged at London Heathrow.
While there was no new news on Air Europa - the acquisition is still expected to be concluded by the end of 2024 on the agreed terms of €400 million for the 80% the company does not already own, with payment being deferred.
Management sees TAP Portugal as an attractive additional opportunity, which would enable a dual-hub system for the Latin American market, similar to the dual hub system the group operates out of London and Dublin for the US market.
The Avios air miles loyalty program is now a business in its own right, targeting 10% profit growth per year on a 22% operating margin.
Since 2019, has increased EBIT by 65%, as Avios collection has increased by 20% and Avios spending by 25%.
Stifel has a 'hold' rating on the shares, with a €2.00 target price versus €1.78 last close