BofA adds IAG to Europe 1 list on prospects for recovery in travel

Not least, they argued that the coming revival in travel should reduce concerns regarding further capital hikes.

"Our economists on both sides of the pond expect continued easing of restrictions in the coming months, which bodes well for travel between the two countries," they said in a research note sent to clients.

"We believe the market will increasingly look beyond near term COVID risks to the recovery. An imminent travel revival should alleviate concerns about further capital raising."

The carrier's sales for over the next 12 months were seen at half their 2019 levels, improving from 20% of their comparable year ago level in the first quarter to approximately 70% by the back half of 2021.

In 2022 meanwhile, sales were expected to recover to 80% of their pre-crisis level.

"IAG appears well placed to gain share on the Transatlantic routes, given capacity cuts from competitors and its planned acquisition of Air Europa.

"While we expect a slower recovery in corporate travel, IAG has the lowest exposure of the FSCs (full service carriers) with corporate representing less than 33% of pre-crisis revenues."