IAG initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of IAG with a Sector Perform rating and 180 GBp price target. The company’s competitive position in the North Atlantic brings longer-term risks for its British Airways and Aer Lingus units, the analyst tells investors in a research note. Norse Atlantic and Jet Blue are both operating between the U.S. and London, and Jet Blue has eroded business class fares on U.S. domestic routes in the past with its lie-flat Mint product, says RBC.