Flybe soars as IAG said to be lining up bid

26th Nov 2018 14:19

(Sharecast News) - Shares in Flybe surged again on Monday following a report that International Consolidated Airlines is considering bidding for the budget airline.According to the Sunday Telegraph, IAG is planning to go head to head with Virgin Atlantic after Flybe confirmed last week that the airline founded by Richard Branson was among the parties with whom it was in discussions about a possible sale.The Telegraph cited multiple industry sources as saying that IAG was in pole position to buy Flybe, whose regional network would provide a useful link into BA's global hub at Heathrow.Southend airport owner Stobart Group - which abandoned its pursuit of Flybe back in March after the two parties were unable to agree terms - is also said to be in the running for Flybe again.Flybe announced earlier this month that it was putting itself up for sale as it posted a drop in first-half profits. It also said it was reviewing other options, including further capacity and cost saving measures and initiatives to strengthen the balance sheet and preserve cash resources.At 1430 GMT, the shares were up 38.7% to 22.95p.