International Consolidated Airlines (GB:IAG)
LSE:IAG
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International Consolidated Airlines
(LSE:IAG)
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Rating:68Neutral
Price Target:
399.00 p
▲(7.90% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid financial performance (strong margins and cash generation, though leverage and softer 2025 revenue/FCF conversion add risk) and an attractive valuation. These positives are tempered by weak technicals (below key moving averages with negative MACD) and earnings-call headwinds (FX/fuel volatility, engine constraints, and litigation/cost pressures) despite confident guidance and active shareholder returns.
Positive Factors
Operating profitability & margins
Consistently top‑end operating margins and recovered net margins demonstrate durable cost control and pricing power across IAG's short‑ and long‑haul networks. Strong margins support earnings resilience through cycles and provide capacity to fund fleet investment and shareholder returns over the medium term.
Negative Factors
High leverage
Elevated debt relative to equity (debt/equity ~2.6x) leaves IAG more exposed to demand shocks and higher rates. While improved versus prior years, persistent leverage can constrain strategic flexibility, increase interest burden and amplify downside in weaker travel cycles or cash‑flow stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability & margins
Consistently top‑end operating margins and recovered net margins demonstrate durable cost control and pricing power across IAG's short‑ and long‑haul networks. Strong margins support earnings resilience through cycles and provide capacity to fund fleet investment and shareholder returns over the medium term.
Read all positive factors
International Consolidated Airlines (IAG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£16.72B
Dividend Yield2.07%
Average Volume (3M)13.16M
Price to Earnings (P/E)2.9
Beta (1Y)1.42
Revenue Growth6.42%
EPS Growth17.62%
CountryUK
Employees52,762
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding4,521,660,600
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
£453.69Price Target Upside22.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.62
Revenue Forecast (FY)£30.14B
International Consolidated Airlines Business Overview & Revenue Model
Company Description
International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company o...
How the Company Makes Money
IAG primarily generates revenue by selling air transportation and related travel services. Its main revenue stream is passenger ticket sales across its airlines, with pricing and volumes influenced by route network mix (short-haul vs. long-haul), ...
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 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 | 19.89B | 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
Neutral
369.80
Price Trends
399.80
Negative
401.09
Negative
389.84
Negative
Market Momentum
-12.16
Negative
48.63
Neutral
60.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IAG, the sentiment is Neutral. The current price of 369.8 is above the 20-day moving average (MA) of 359.03, below the 50-day MA of 399.80, and below the 200-day MA of 389.84, indicating a neutral trend. The MACD of -12.16 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 60.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IAG.
International Consolidated Airlines Peers Comparison
UnderperformOutperform
Sector (63)
GB:IAG
International Consolidated Airlines
369.80
136.78
58.70%
GB:EZJ
EasyJet
364.50
-55.43
-13.20%
GB:WIZZ
Wizz Air Holdings
902.50
-464.50
-33.98%
International Consolidated Airlines Corporate Events
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...
Regulatory Filings and Compliance
IAG Director Eva Castillo Buys Shares in Market-Notified Transaction
Positive
Mar 19, 2026
International Consolidated Airlines Group, S.A. is a major European airline holding company that operates multiple flag-carrier and low-cost airlines, with a primary focus on passenger air travel across Europe and long-haul international routes. T...
Executive/Board ChangesRegulatory Filings and Compliance
IAG executives receive new share awards under long‑term incentive plans
Positive
Mar 18, 2026
International Consolidated Airlines Group has disclosed a series of share acquisitions by senior executives under its executive share plans, as required by EU Market Abuse Regulation. Ordinary shares were allotted on a net-of-tax basis to multiple...
Business Operations and StrategyExecutive/Board Changes
IAG grants long‑term share awards to senior executives
Neutral
Mar 18, 2026
International Consolidated Airlines Group has granted awards of conditional shares under its 2026 Executive Share Plan to a group of top executives, including Group Chief Executive Director Luis Gallego and the chief executives of British Airways,...
Regulatory Filings and Compliance
IAG Updates Share Capital and Total Voting Rights
Neutral
Mar 17, 2026
International Consolidated Airlines Group has disclosed its current capital structure and voting rights, reporting that it holds 191,108,733 treasury shares with a nominal value of €0.10 each. Excluding these treasury shares, the companyR...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Buys Back 13.5 Million Shares Under €500m Programme
Positive
Mar 16, 2026
International Consolidated Airlines Group has continued to execute its €500 million share buyback programme, repurchasing 13,487,134 ordinary shares between 9 and 13 March 2026 across the London and Madrid exchanges at prices ranging from &#...
Business Operations and StrategyStock Buyback
IAG Buys Back 13 Million Shares Under €500m Repurchase Programme
Positive
Mar 9, 2026
International Consolidated Airlines Group has continued to advance its recently launched €500 million share buyback, repurchasing 13,015,497 ordinary shares between 2 and 6 March 2026 on the London and Madrid exchanges at prices ranging from...
Financial DisclosuresRegulatory Filings and Compliance
IAG Files 2025 Annual Report with UK National Storage Mechanism
Neutral
Mar 5, 2026
International Consolidated Airlines Group has published its Annual Report and Accounts for the financial year ended 31 December 2025, following the release of its full-year 2025 results in late February. The report is now available on the company&...
Regulatory Filings and Compliance
IAG Discloses Share Sales by Vueling and Iberia Chief Executives
Neutral
Mar 3, 2026
International Consolidated Airlines Group disclosed share transactions by senior executives in accordance with market abuse regulations. The company reported that Carolina Martinoli, chair and chief executive of Vueling, and Marco Sansavini, chair...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital Structure
Neutral
Mar 2, 2026
International Consolidated Airlines Group has disclosed its latest share capital structure, reporting total issued share capital of 4,727,201,147 shares, of which 161,986,089 are held in treasury. Excluding these treasury shares, the company has 4...
Business Operations and StrategyStock Buyback
IAG launches €500m buyback while Qatar Airways maintains 25% stake
Positive
Feb 27, 2026
International Consolidated Airlines Group has launched a €500 million share buyback programme aimed at reducing its share capital, subject to shareholder approval, with Morgan Stanley Europe SE and Goldman Sachs Bank Europe SE mandated to ex...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
IAG Publishes Full-Year 2025 Results and Schedules Investor Webcast
Neutral
Feb 27, 2026
International Consolidated Airlines Group has released its full year 2025 financial results for the 12 months ended 31 December 2025, making the detailed figures available through regulatory and corporate channels. The documents have been filed wi...
Stock BuybackDividends
IAG Unveils Dividend Payout and €1.5 Billion Cash Return to Shareholders
Positive
Feb 26, 2026
International Consolidated Airlines Group plans to recommend a final dividend of €0.05 per share for the 2025 financial year, bringing the total annual dividend to €0.098 per share, or €448 million based on its issued share capit...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital Structure
Neutral
Feb 6, 2026
International Consolidated Airlines Group has disclosed its current capital structure and voting rights, stating that it holds 162,073,135 treasury shares with a nominal value of €0.10 each, and that its issued share capital excluding treasu...
Business Operations and StrategyExecutive/Board Changes
IAG Names Internal Successor as Group CFO in Planned 2026 Transition
Positive
Jan 9, 2026
International Airlines Group announced a planned chief financial officer transition, with current CFO Nicholas Cadbury set to leave the group in June 2026 and José Antonio Barrionuevo, currently Chief Financial and Transformation Officer at B...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital
Neutral
Jan 5, 2026
International Consolidated Airlines Group has disclosed its current capital structure and voting rights, reporting that it holds 162,175,275 shares in treasury, each with a nominal value of €0.10, and that its issued share capital excluding ...
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.