International Consolidated Airlines Group SA (LSE:IAG) (IAG), the owner of British Airways, is eyeing up a possible deal for troubled rival easyJet PLC, according to reports over the weekend.
TAP, Portugal’s flag carrier, is another possibility, according to the reports, with IAG looking to consolidate its position in Europe as airlines recover from the pandemic.
The BA and Iberia owner had a strong third quarter leading to bullish talk about expansion from CEO Luis Gallego at a conference last week.
“We are a platform for consolidation. We will only do what makes sense but we see there are opportunities to be stronger. We are a group that wants to consolidate the industry.”
Shares in easyJet are a quarter of their pre-pandemic level with a market value of £2.5bn but it has a terminal at Luton Airport and 70% of slots at Gatwick, at both Paris airports, Amsterdam, Geneva and Zurich.
Founder Stelios Haji-Ioannou has reduced his holding to below 15%, which might also encourage a bidder, said analysts.
TAP, meanwhile, is in the process of being privatised by the Portuguese government.
Shares in IAG rose 5% to 121p and easyJet 7.5% to 353p.