International Consolidated Airlines (GB:IAG)
LSE:IAG
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International Consolidated Airlines
(LSE:IAG)
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Rating:76Outperform
Price Target:
523.00 p
▲(27.53% Upside)
Action:Upgraded
Date:06/07/26
The score is led by attractive valuation (very low P/E and a modest dividend) and constructive technical momentum (price above major moving averages with positive MACD). Financial performance is solid on margins and cash generation, but is held back by elevated leverage, softer 2025 top-line momentum, and weaker free-cash-flow conversion versus earnings.
Positive Factors
Improved Profitability & Margins
Sustained mid-teens operating margins and a double-digit net margin reflect structural cost control and improved unit economics since the pandemic. This margin base supports resilience across cycles, funds reinvestment and shareholder returns over the next 2–6 months.
Negative Factors
Elevated Leverage
High debt relative to equity limits financial flexibility and increases interest-rate and demand-swing vulnerability. Elevated leverage constrains strategic optionality for fleet investment or buybacks and magnifies downside in weaker travel cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Margins
Sustained mid-teens operating margins and a double-digit net margin reflect structural cost control and improved unit economics since the pandemic. This margin base supports resilience across cycles, funds reinvestment and shareholder returns over the next 2–6 months.
Read all positive factors
International Consolidated Airlines (IAG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£20.19B
Dividend Yield2.07%
Average Volume (3M)13.16M
Price to Earnings (P/E)5.1
Beta (1Y)1.46
Revenue Growth4.84%
EPS Growth30.33%
CountryUK
Employees52,762
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.73
Shares Outstanding4,440,038,000
10 Day Avg. Volume14,982,072
30 Day Avg. Volume13,155,078
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)2.93
Price to Sales (P/S)0.68
P/FCF Ratio7.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£477.14Price Target Upside16.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.55
Revenue Forecast (FY)£29.91B
International Consolidated Airlines Business Overview & Revenue Model
Company Description
International Consolidated Airlines Group S.A., known as IAG, delivers a wide array of air transport solutions, encompassing both passenger flights and freight services. The company's global footprint covers key regions such as the United Kingdom,...
How the Company Makes Money
IAG primarily generates revenue from providing air transportation and related services through its operating airlines. The main revenue streams are: (1) Passenger revenue: ticket sales across cabins (economy, premium economy, business, first where...
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presented a strong, confident financial and operational performance: record operating profit, top‑end margins, double‑digit EPS growth, robust free cash flow, a very healthy balance sheet and expanded shareholder returns. These positives were tempered by several manageable headwinds — FX revenue pressure in early 2026, fuel price volatility, unresolved VAT litigation, engine availability issues affecting some aircraft, and localized competitive and airport charge risks. Management signaled mitigation plans (continued transformation, disciplined capital allocation, and fleet planning) and maintained a positive outlook.Positive Updates
Record Operating Profit and Strong Margin
Reported operating profit of EUR 5.024 billion, up EUR 581 million year-on-year; operating margin at 15.1% (up 1.3 percentage points) — at the top end of the group's 12–15% target range.
Negative Updates
FX Headwind to Revenue in 2026
Weaker pound vs euro and weaker dollar vs pound/euro expected to create a significant FX headwind on revenue in the first half of 2026 (management flagged a material near‑term revenue currency impact).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Operating Profit and Strong Margin
Reported operating profit of EUR 5.024 billion, up EUR 581 million year-on-year; operating margin at 15.1% (up 1.3 percentage points) — at the top end of the group's 12–15% target range.
Read all positive updates
Company Guidance
IAG guided for disciplined, cash-generative growth in 2026 with group capacity up around 3% and medium‑term ASK growth targeted at 2–4%; they expect non‑fuel costs to be down ~1% in 2026 (which includes ~2% of FX benefit, implying c.+1% on a constant‑currency basis) while fuel bill was quoted at ~EUR 7.0bn on the 31‑Dec curve (62% hedged) and nearer ~EUR 7.4bn on current forwards, with ETS/CORSIA costs up ≈EUR 150m year‑on‑year. 2025 results underpinning the guidance included operating profit of EUR 5.024bn and a 15.1% operating margin, adjusted EPS +22.4% and adjusted PAT +17% to EUR 3.3bn, ROIC 18.5%, free cash flow of EUR 3.1bn after EUR 3.4bn CapEx, net debt leverage 0.8x (gross debt 1.9x) and liquidity >EUR 10bn; CapEx is guided at ~EUR 3.6bn in 2026 (17 aircraft) rising to ~EUR 4.9bn p.a. in 2027–28 and ~EUR 5.6bn p.a. in 2029–31 before normalising to ~EUR 4.5bn from 2032. Shareholder returns remain active: a total 2025 dividend of EUR 448m, the announced EUR 1.5bn of excess cash returns (≈6.5% of today’s market cap), buybacks that reduced shares by 4.3%, and a widened excess‑cash distribution range of 1.0–1.5x net debt while aiming to keep net leverage <1.8x (gross 1.5–2x).International Consolidated Airlines Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 32.61B | 32.10B | 29.45B | 23.07B | 8.46B |
| Gross Profit | 6.98B | 7.58B | 6.70B | 4.10B | -1.02B |
| EBITDA | 7.51B | 6.83B | 6.21B | 3.50B | -823.00M |
| Net Income | 3.28B | 2.73B | 2.65B | 431.00M | -2.93B |
Balance Sheet | |||||
| Total Assets | 42.90B | 43.80B | 37.68B | 39.30B | 34.41B |
| Cash, Cash Equivalents and Short-Term Investments | 8.33B | 9.80B | 6.81B | 9.57B | 7.91B |
| Total Debt | 14.27B | 17.34B | 16.08B | 19.98B | 19.61B |
| Total Liabilities | 35.30B | 37.63B | 34.40B | 37.28B | 33.56B |
| Stockholders Equity | 7.60B | 6.17B | 3.27B | 2.02B | 840.00M |
Cash Flow | |||||
| Free Cash Flow | 3.09B | 3.56B | 1.32B | 960.00M | -885.00M |
| Operating Cash Flow | 6.47B | 6.37B | 4.86B | 4.83B | -141.00M |
| Investing Cash Flow | -2.72B | -2.50B | -3.42B | -3.46B | -181.00M |
| Financing Cash Flow | -4.33B | -1.18B | -5.21B | -56.00M | 2.23B |
International Consolidated Airlines Technical Analysis
Positive
410.10
Price Trends
402.40
Positive
399.64
Positive
398.99
Positive
Market Momentum
15.37
Negative
66.45
Neutral
90.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IAG, the sentiment is Positive. The current price of 410.1 is below the 20-day moving average (MA) of 427.05, above the 50-day MA of 402.40, and above the 200-day MA of 398.99, indicating a bullish trend. The MACD of 15.37 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 90.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IAG.
International Consolidated Airlines Peers Comparison
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Sector (63)
GB:IAG
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454.80
152.56
50.48%
GB:EZJ
EasyJet
504.00
10.98
2.23%
GB:WIZZ
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1,176.00
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10.94%
International Consolidated Airlines Corporate Events
Regulatory Filings and Compliance
IAG Executives Disclose Share Sales Under MAR Rules
Neutral
Jun 18, 2026
International Consolidated Airlines Group disclosed share transactions by two senior executives in line with market abuse regulations. The announcement underscores the company’s adherence to transparency requirements governing dealings by pe...
DividendsShareholder Meetings
IAG Confirms 2025 Final Dividend and Sets Late-June Payment Schedule
Positive
Jun 18, 2026
International Consolidated Airlines Group will distribute a 2025 final cash dividend of €0.05 per share, following approval at its 2026 Annual Shareholders’ Meeting. After applying a 19% withholding tax, shareholders will receive a net...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
IAG Shareholders Approve All Board Resolutions at 2026 AGM
Positive
Jun 18, 2026
International Consolidated Airlines Group announced that its Annual Shareholders’ Meeting, held on 18 June 2026 on second call, approved all resolutions proposed by the Board of Directors with a sufficient majority. The company will make the...
Stock BuybackRegulatory Filings and Compliance
IAG Advances €500 Million Buyback With New Treasury Share Purchases
Positive
Jun 15, 2026
International Consolidated Airlines Group has continued executing its previously announced €500 million share buyback, repurchasing 6,104,208 ordinary shares between 8 and 12 June 2026 on the London and Madrid exchanges. The shares, bought a...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback With New Treasury Share Purchases
Positive
Jun 8, 2026
International Consolidated Airlines Group has repurchased 6,575,773 ordinary shares between 1 June and 5 June 2026 on the London and Madrid exchanges as part of its €500 million share buyback programme. The shares, which were bought within s...
Business Operations and StrategyPrivate Placements and Financing
IAG Calls Remaining 1.125% 2028 Convertible Bonds for Full Redemption
Positive
Jun 5, 2026
International Consolidated Airlines Group has moved to redeem all remaining 1.125% senior unsecured convertible bonds due 2028, having already repurchased and cancelled 99.6% of the original issue. The company will redeem the outstanding €3....
Business Operations and Strategy
IAG Showcases Loyalty Business Growth Prospects at Investor Event
Positive
Jun 3, 2026
International Consolidated Airlines Group is convening analysts and investors for a capital markets event focused on its IAG Loyalty unit, underscoring the importance of loyalty and rewards programmes within its broader airline portfolio. The sess...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital
Neutral
Jun 2, 2026
International Consolidated Airlines Group has disclosed an updated count of its share capital and voting rights, confirming it holds over 160 million treasury shares while the number of shares carrying voting rights stands at about 4.45 billion. T...
Stock BuybackRegulatory Filings and Compliance
IAG Buys Back Nearly 3 Million Shares Under €500m Programme
Neutral
Jun 1, 2026
International Consolidated Airlines Group has repurchased 2,943,849 ordinary shares between 26 and 29 May 2026 on the London and Madrid exchanges, paying prices in the range of about £4.05 to £4.30 and €4.70 to €5.00. The buy...
Regulatory Filings and Compliance
IAG Discloses Significant Share Sales by Senior Executives
Neutral
May 29, 2026
International Consolidated Airlines Group disclosed share dealings by senior executives under market abuse regulations, indicating internal equity transactions rather than changes to corporate strategy. Chief Financial and Sustainability Officer N...
Business Operations and StrategyPrivate Placements and Financing
IAG Raises €1 Billion Through Dual Bond Issue on Euronext Dublin
Positive
May 28, 2026
International Consolidated Airlines Group has completed the full subscription and settlement of two new senior unsecured bond series, raising a combined €1 billion through €500 million Series A Bonds and €500 million Series B Bon...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Buys Back 6.8 Million Shares Under €500m Programme
Positive
May 26, 2026
International Consolidated Airlines Group has continued its capital management strategy by repurchasing 6,822,053 ordinary shares between 18 and 22 May 2026 on the London and Madrid exchanges. These transactions form part of a €500 million s...
Business Operations and StrategyPrivate Placements and Financing
IAG Nears Full Redemption of 2028 Convertible Bonds After Major Buyback
Positive
May 21, 2026
International Consolidated Airlines Group has completed the repurchase, redemption and cancellation of senior unsecured convertible bonds maturing in May 2028 with an aggregate principal amount of EUR 821.7 million, representing 99.6% of the origi...
Business Operations and StrategyPrivate Placements and Financing
IAG Raises EUR 1 Billion via Fully Subscribed Dual-Tranche Bond Issue
Positive
May 20, 2026
International Consolidated Airlines Group has set final terms for two fully subscribed series of senior unsecured bonds, each with an aggregate size of EUR 500 million. Series A carries a fixed annual coupon of 3.875% and is priced at 99.752% of p...
Business Operations and StrategyPrivate Placements and Financing
IAG Taps Institutional Debt Markets With €1 Billion Dual-Tranche Bond Issue
Positive
May 20, 2026
International Consolidated Airlines Group has launched two new series of senior unsecured bonds, each with an initial proposed principal amount of about €500 million, maturing in 2031 and 2034 respectively. The bonds target only eligible cou...
Business Operations and StrategyStock Buyback
IAG Launches Second €500m Buyback to Cut Share Capital
Positive
May 15, 2026
International Consolidated Airlines Group has launched a new €500 million share buyback, the second tranche of a previously announced €1.5 billion return of excess cash to investors, with the stated aim of reducing its share capital su...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Completes Latest Tranche of €500m Share Buyback
Positive
May 15, 2026
International Consolidated Airlines Group has repurchased 1,293,627 ordinary shares between 11 and 14 May 2026 on the London and Madrid exchanges as part of its previously announced €500 million share buyback programme. The transactions, exe...
Business Operations and StrategyStock Buyback
IAG Completes €500 Million Share Buyback Ahead of Planned Capital Reduction
Positive
May 15, 2026
International Consolidated Airlines Group has completed a €500 million share buyback, acquiring 116,823,728 ordinary shares, or about 2.53% of its issued share capital as of 14 May 2026. The programme, conducted in line with EU and UK market...
Business Operations and StrategyPrivate Placements and Financing
IAG Retires 99.6% of 2028 Convertible Bonds in Major Buyback
Positive
May 12, 2026
International Consolidated Airlines Group has moved to substantially retire its 1.125% senior unsecured convertible bonds due 2028, repurchasing €821.7 million of the original €825 million issue. The buyback, carried out via a cash inv...
Business Operations and StrategyPrivate Placements and Financing
IAG to Retire 2028 Convertible Bonds After €819m Repurchase
Positive
May 11, 2026
International Consolidated Airlines Group has moved to significantly reduce its outstanding debt by repurchasing €819 million of its €825 million 1.125% senior unsecured convertible bonds due 2028 through a reverse bookbuilding process...
Regulatory Filings and ComplianceShareholder Meetings
International Consolidated Airlines Group Publishes 2026 AGM Notice and Resolutions
Neutral
May 11, 2026
International Consolidated Airlines Group, S.A. has issued a formal notice of its 2026 Annual General Meeting, confirming that the call notice of the shareholder meeting and the proposed resolutions have been filed with the National Storage Mechan...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Adds 4.4 Million Shares to Treasury Under €500m Buyback
Positive
May 11, 2026
International Consolidated Airlines Group has repurchased 4,420,043 ordinary shares between 5 and 8 May 2026 on the London and Madrid exchanges as part of its €500 million share buyback programme. The company is holding these shares in treas...
Business Operations and StrategyPrivate Placements and Financing
IAG launches €825m buyback of 2028 convertible bonds
Positive
May 11, 2026
International Consolidated Airlines Group has launched a reverse bookbuild to repurchase up to the full €825 million outstanding of its 1.125% senior unsecured convertible bonds due 2028, which are listed on the Frankfurt Open Market. The of...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings
IAG sets June shareholder meeting with broad capital and governance agenda
Positive
May 8, 2026
International Consolidated Airlines Group’s board has called its annual shareholders’ meeting in Madrid for 18 June 2026, with an option for remote attendance if quorum is met on the second call. Shareholders will be asked to approve t...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
IAG Publishes Q1 2026 Results and Schedules Investor Presentation
Neutral
May 8, 2026
International Consolidated Airlines Group has published its interim management statement for the first quarter of 2026, covering the period to March 31, with full results now accessible via the London Stock Exchange and the company’s investo...
Business Operations and StrategyStock Buyback
IAG Expands €500m Buyback With New Share Purchases
Positive
May 5, 2026
International Consolidated Airlines Group has continued executing its €500 million share buyback programme, repurchasing 11,684,802 ordinary shares between 27 and 30 April 2026 across the London and Madrid exchanges. The shares, acquired at ...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital Structure
Neutral
May 1, 2026
International Consolidated Airlines Group has disclosed its current share capital structure, confirming it holds 146,660,050 treasury shares with a nominal value of €0.10 each and an issued share capital of 4,611,669,527 shares in total. The...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Buys Back 13.8 Million Shares Under €500 Million Programme
Positive
Apr 27, 2026
International Consolidated Airlines Group has continued executing its previously announced €500 million share buyback, purchasing 13,764,569 ordinary shares between 20 and 24 April 2026 across the London and Madrid exchanges at prices reflec...
Business Operations and StrategyRegulatory Filings and Compliance
IAG Finalises Share Capital Reduction via Treasury Share Cancellation
Neutral
Apr 27, 2026
International Consolidated Airlines Group has completed a reduction of its share capital through the cancellation of 115,531,620 treasury shares, following registration of the move in the Madrid Commercial Register. The cancelled shares will be ex...
Business Operations and StrategyStock Buyback
IAG Buys Back 13 Million Shares as €500m Programme Advances
Positive
Apr 20, 2026
International Consolidated Airlines Group has continued to execute its previously announced €500 million share buyback, repurchasing 13,078,007 ordinary shares between 13 and 17 April 2026 across the London and Madrid exchanges. The shares, ...
Business Operations and StrategyStock Buyback
IAG Buys Back Over 7 Million Shares Under €500m Programme
Neutral
Apr 13, 2026
International Consolidated Airlines Group has repurchased 7,168,944 ordinary shares between 7 and 10 April 2026 under its €500 million share buyback programme. The purchases were executed on the London and Madrid exchanges at prices ranging ...
Executive/Board ChangesRegulatory Filings and Compliance
IAG Discloses Share Option Grant to IAG Loyalty Chief Under UK SAYE Plan
Neutral
Apr 8, 2026
International Consolidated Airlines Group disclosed a management-related equity transaction involving its loyalty division. Adam Daniels, who serves as Chair and CEO of IAG Loyalty and is classified as a person discharging managerial responsibilit...
Regulatory Filings and Compliance
IAG CFO Nicholas Cadbury Sells 225,000 Shares in London Transaction
Neutral
Apr 8, 2026
International Consolidated Airlines Group disclosed a managerial share transaction involving its chief financial and sustainability officer, Nicholas Cadbury. The company, a leading airline holding group with extensive global passenger and cargo o...
Business Operations and StrategyStock Buyback
IAG Expands €500 Million Buyback With New Treasury Share Purchases
Positive
Apr 7, 2026
International Consolidated Airlines Group has repurchased 5,629,871 ordinary shares between 1 and 2 April 2026 across the London and Madrid exchanges, with trades executed within specified price ranges in pounds and euros. The purchases form part ...
Business Operations and StrategyStock Buyback
IAG Completes First Tranche of €500m Share Buyback, Lifts Treasury Stock to 92.8m Shares
Positive
Apr 1, 2026
International Consolidated Airlines Group has repurchased 5,615,005 ordinary shares between 30 and 31 March 2026 across the London and Madrid exchanges, as part of its previously announced €500 million share buyback programme. The shares, ac...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500 Million Buyback With 13.7 Million Share Repurchase
Positive
Mar 30, 2026
International Consolidated Airlines Group has repurchased 13,709,731 ordinary shares between 23 and 27 March 2026 on the London and Madrid exchanges, as part of its previously announced €500 million share buyback programme. The shares will b...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Finalises €11.6 Million Share Capital Reduction After Buy-Back
Positive
Mar 24, 2026
International Consolidated Airlines Group has executed a share capital reduction following completion of the second €500 million tranche of its €1 billion share buy-back programme approved at the June 2025 shareholders’ meeting. ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Buys Back Nearly 14 Million Shares Under €500m Programme
Positive
Mar 23, 2026
International Consolidated Airlines Group has repurchased 13,956,498 ordinary shares between 16 and 20 March 2026 on the London and Madrid exchanges, as part of its previously announced €500 million share buyback programme. The purchases, ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.