EasyJet shares soar on IAG takeover reports

Shares in budget airline operator easyJet surged over 6% this Monday on reports that the group could be a takeover target for International Consolidated Airlines Group. Speculation is mounting that British Airways-owner IAG could look to acquire smaller rivals such as easyJet or Portugal's TAP, according to the Times. “Reports that easyJet could be a takeover target for International Consolidated Airlines make perfect sense,” AJ Bell investment director Russ Mould, said. “The pandemic has created concerns about the future of business travel, with companies globally realising they don’t need to hold so many meetings in different locations. It’s far easier, cheaper and more environmentally friendly to hold many conversations over Teams or Zoom than get on a plane. Therefore, companies like International Consolidated Airlines need to rethink their future sources of revenue as they may find that business travel doesn’t match pre-COVID levels. Owning EasyJet would significantly boost International Consolidated Airlines’ position in the leisure market and give it access to many prized airport landing slots."<br/>