aaranmcguire/gist:13e890a8b8a73027e8b4f7cdb3809bab

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	https://www.ft.com/content/740f8e18-d1b6-4fb2-97db-79a529d2200d

	A pair of International Consolidated Airlines Group executives appear confident that the airline group will overcome the chaos wrought by coronavirus and have bought shares, which have plunged more than a third this year.

IAG airlines, including British Airways and Iberia, have been forced to limit travel to destinations deemed especially vulnerable to the epidemic, with BA halting travel to Italy and the group halting flights to mainland China. IAG full-year 2019 results released in February revealed operating profits of €3.29bn (£2.89bn), representing a €200m drop from 2018, with fuel unit costs for the year rising 9.6 per cent. Owing to the uncertainty presented by coronavirus, the airline group declined to provide 2020 profit guidance. But the International Air Transport Association’s (IATA) latest forecasts estimate puts lost worldwide passenger revenues at $113bn for this year.

IAG non-executive chairman Antonio Vazquez Romero and non-executive director Francisco Javier Ferran Larraz have subsequently bought into the group’s share price weakness. Mr Romero purchased 84,000 shares at €5.344 each on March 3, in the week after IAG’s results release, at an aggregate cost of €448,896.

Mr Larraz bought 144,000 shares at a price of €5.222, also on March 3, with an aggregate value of €751,968. He subsequently bought a further 85,900 shares at €4.6763 a share on March 9, at a total value of €401,694. IAG declined to comment on the directors’ dealings.

Peel Hunt analysts forecast full-year 2020 adjusted pre-tax profits and earnings per share of €2.6bn and 101.5 cents respectively, rising to €2.9bn and 111.5 cents in 2021.

Like all investors, insiders who own stock in their company are not immune to the panic that sets in when markets enter freefall. But unlike ordinary investors, they have an unofficial duty to show confidence and restraint at times of peak distress.

This might help to explain why we have seen fewer director sales in the past fortnight. Bucking this trend is Waqas Samad, the director of information services and chief executive of FTSE Russell, the index provider subsidiary of the London Stock Exchange. On March 4, amid a short-lived rally in UK equities, Mr Samad sold 20,890 shares in the FTSE 100 giant, banking £1.65m in the process.

From a day trader’s perspective, he appears to have got his timing bang on. Since Mr Samad cashed in some of his chips, shares in the bourse are down 9 per cent at £71.74.

It might be tempting to second guess the reasons for the disposal, particularly with the LSE’s purchase of financial data group Refinitiv yet to pass Europe’s regulators. But as we have argued for some months, shares in the LSE are priced for perfection; when Mr Samad sold his at £79, the stock was trading on 36 times consensus earnings for 2020.

Plus, judging by others’ disclosures, this clearly isn’t LSE insiders’ house view. In the same week, non-executive directors Marshall Bailey and Val Rahmani both bought in at a price between £76.38 and £79.27.

	Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
	https://www.ft.com/content/740f8e18-d1b6-4fb2-97db-79a529d2200d

	A pair of International Consolidated Airlines Group executives appear confident that the airline group will overcome the chaos wrought by coronavirus and have bought shares, which have plunged more than a third this year.

	IAG airlines, including British Airways and Iberia, have been forced to limit travel to destinations deemed especially vulnerable to the epidemic, with BA halting travel to Italy and the group halting flights to mainland China. IAG full-year 2019 results released in February revealed operating profits of €3.29bn (£2.89bn), representing a €200m drop from 2018, with fuel unit costs for the year rising 9.6 per cent. Owing to the uncertainty presented by coronavirus, the airline group declined to provide 2020 profit guidance. But the International Air Transport Association’s (IATA) latest forecasts estimate puts lost worldwide passenger revenues at $113bn for this year.

	IAG non-executive chairman Antonio Vazquez Romero and non-executive director Francisco Javier Ferran Larraz have subsequently bought into the group’s share price weakness. Mr Romero purchased 84,000 shares at €5.344 each on March 3, in the week after IAG’s results release, at an aggregate cost of €448,896.

	Mr Larraz bought 144,000 shares at a price of €5.222, also on March 3, with an aggregate value of €751,968. He subsequently bought a further 85,900 shares at €4.6763 a share on March 9, at a total value of €401,694. IAG declined to comment on the directors’ dealings.

	Peel Hunt analysts forecast full-year 2020 adjusted pre-tax profits and earnings per share of €2.6bn and 101.5 cents respectively, rising to €2.9bn and 111.5 cents in 2021.

	Like all investors, insiders who own stock in their company are not immune to the panic that sets in when markets enter freefall. But unlike ordinary investors, they have an unofficial duty to show confidence and restraint at times of peak distress.

	This might help to explain why we have seen fewer director sales in the past fortnight. Bucking this trend is Waqas Samad, the director of information services and chief executive of FTSE Russell, the index provider subsidiary of the London Stock Exchange. On March 4, amid a short-lived rally in UK equities, Mr Samad sold 20,890 shares in the FTSE 100 giant, banking £1.65m in the process.

	From a day trader’s perspective, he appears to have got his timing bang on. Since Mr Samad cashed in some of his chips, shares in the bourse are down 9 per cent at £71.74.

	It might be tempting to second guess the reasons for the disposal, particularly with the LSE’s purchase of financial data group Refinitiv yet to pass Europe’s regulators. But as we have argued for some months, shares in the LSE are priced for perfection; when Mr Samad sold his at £79, the stock was trading on 36 times consensus earnings for 2020.

	Plus, judging by others’ disclosures, this clearly isn’t LSE insiders’ house view. In the same week, non-executive directors Marshall Bailey and Val Rahmani both bought in at a price between £76.38 and £79.27.