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    Jarrod Castle • UBS

    Jarrod Castle's questions to InterContinental Hotels Group PLC (IHG) leadership

    Jarrod Castle's questions to InterContinental Hotels Group PLC (IHG) leadership • H1 2025

    Question

    Jarrod Castle of UBS asked about the scale and phasing of the branded residential business's contribution to profitability, the allocation of investment across IHG's technology pillars, and the potential for further M&A or brand additions following the Ruby acquisition.

    Answer

    CEO Elie Maalouf described branded residential as a growing fee stream, particularly from luxury brands like Six Senses and Regent. He explained that technology investments are managed consistently through the system fund with a focus on continuous product management rather than large one-off projects. Regarding M&A, he stated that while IHG is pleased with the Ruby integration, future brand additions could be either organic or inorganic, without providing a specific timeline.

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    Jarrod Castle's questions to InterContinental Hotels Group PLC (IHG) leadership • H1 2025

    Question

    Jarrod Castle of UBS Group AG asked for details on the scale and phasing of branded residential contributions, the allocation of investment across IHG's technology pillars, and whether the company is considering further M&A in the short or medium term.

    Answer

    CEO Elie Maalouf highlighted that branded residential is a growing, consistent fee contributor, particularly with the Six Senses and Regent brands. Regarding technology, he stated that investments in platforms like GRS, PMS, and RMS are continuous and managed within the system fund for high returns. CFO Michael Glover added that IHG has no significant 'tech debt' due to this consistent investment. Maalouf confirmed that while IHG is pleased with the Ruby integration, future brand additions could be either organic or inorganic.

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    Jarrod Castle's questions to Air France KLM SA (AFLYY) leadership

    Jarrod Castle's questions to Air France KLM SA (AFLYY) leadership • Q1 2025

    Question

    Jarrod Castle of UBS Group AG inquired about Air France-KLM's profit outlook, asking for confirmation of the previously mentioned EUR 300 million profit progression. He also sought commentary on current air freight trends and the potential impact of new tariffs on the company's maintenance costs and CapEx.

    Answer

    CFO Steven Zaat clarified that while the company does not issue specific profit guidance, the previously discussed EUR 300 million impact from non-recurring incidentals from last year remains a valid consideration. Regarding air freight, he noted the booking window is very short and the company's limited exposure to U.S.-China flows means no significant impact is visible yet. On tariffs, he stated that with a predominantly Airbus fleet, delivery risks are low, and the main uncertainty for maintenance costs stems from potential European retaliation rather than direct U.S. tariffs.

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    Jarrod Castle's questions to Air France KLM SA (AFLYY) leadership • Q1 2025

    Question

    Jarrod Castle of UBS Group AG inquired about Air France-KLM's profit outlook, asking for confirmation of the previously mentioned EUR 300 million profit progression in light of a new fuel tailwind. He also sought commentary on air freight trends and the potential impact of tariffs on CapEx and maintenance costs.

    Answer

    Executive Benjamin Smith clarified that the company does not provide specific profit guidance but affirmed the EUR 300 million headwind from non-recurring positive events in the prior year still stands. Regarding air freight, he noted that with a short booking window and low exposure to U.S.-China flows, no significant impact is visible yet. On tariffs, he stated that the company's reliance on Airbus for new fleet orders mitigates risks and that the impact on maintenance costs is too soon to determine, depending more on European retaliation than direct U.S. actions.

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    Jarrod Castle's questions to Air France KLM SA (AFLYY) leadership • Q1 2024

    Question

    Jarrod Castle from UBS asked about the key factors needed to achieve the 7-8% midterm operating margin target, the profitability development of the Flying Blue loyalty program, and the level of competitive pressure from Chinese airlines on Asian routes.

    Answer

    CEO Benjamin Smith expressed confidence in reaching the margin target, citing improved KLM production, new aircraft efficiencies, exiting unprofitable routes, and an evolved Delta JV as key drivers. CFO Steven Zaat noted Flying Blue's profitability is stable and in line with Q1 trends. He also stated that competition with Chinese carriers is managed through their partnership with China Eastern and restricted capacity.

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    Jarrod Castle's questions to Deutsche Lufthansa AG (DLAKY) leadership

    Jarrod Castle's questions to Deutsche Lufthansa AG (DLAKY) leadership • Q1 2025

    Question

    Jarrod Castle inquired about the potential impact of tariffs on aircraft deliveries and asked about the expected financial performance of ITA Airways for the year, including its potential for profitability.

    Answer

    CEO Carsten Spohr expressed doubt that aircraft tariffs would materialize due to asymmetrical risks for manufacturers and ongoing negotiations. Regarding ITA Airways, he noted that while there are initial integration costs, the focus is on long-term synergies, and he is confident in the strategic value of the investment. CFO Till Streichert added that ITA is currently accounted for as an associate.

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    Jarrod Castle's questions to Deutsche Lufthansa AG (DLAKY) leadership • Q3 2024

    Question

    Jarrod Castle of UBS asked about expected cost pressures from suppliers in 2025, particularly hub airports, and the potential impact on the airfreight business from U.S. tariff changes and the phasing out of Europe's de minimis rule.

    Answer

    CEO Carsten Spohr explained that rising charges at Frankfurt Airport, the most expensive hub, are leading to slower growth there compared to more cost-effective hubs like Zurich. Regarding airfreight, he noted that the company is shifting freighter capacity from the U.S. to Asia to capitalize on high-yield e-commerce demand from China, which mitigates exposure to potential U.S. tariff impacts.

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    Jarrod Castle's questions to Ryanair Holdings PLC (RYAAY) leadership

    Jarrod Castle's questions to Ryanair Holdings PLC (RYAAY) leadership • Q1 2025

    Question

    Jarrod Castle of UBS asked if management was surprised by the rapid deterioration in fare pricing, questioning the underlying demand strength. He also sought clarity on the outlook for ex-fuel cost inflation into fiscal year 2026.

    Answer

    CEO Michael O'Leary admitted surprise at the weakness of close-in booking prices, especially given constrained industry capacity, attributing it to broad consumer pressure. He reaffirmed the strategy to stimulate volume with lower fares. Regarding costs, O'Leary stated that moderation in unit cost increases depends heavily on Boeing meeting its aircraft delivery schedules, noting that delays into 2025 are already a concern.

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