IAG, the parent company of Aer Lingus and British Airways, is on the path to being a “positive equity story” as it emerges from the worst of the pandemic’s effects, according to Redburn analyst James Goodall. Goodall also stated that IAG’s performance is “materially underappreciated” by consensus estimates and upgraded the company’s shares to “buy”. Goodall pointed out that British Airways generated two-thirds of IAG’s earnings before interest and tax in 2019 and that its recovery is critical to the revival of group earnings. In addition to owning Aer Lingus and British Airways, IAG also owns Iberia, Vueling, Level and is in the process of buying Spanish carrier Air Europa. The company plans to use Air Europa to deepen its presence in the Latin American market and expand to Asia from its Madrid hub, with expected synergies from the purchase.