Education
About Us
Working with TipRanks
Follow Us
International Consolidated Airlines Group, S.A. (ICAGY)
OTHER OTC:ICAGY
RESEARCH TOOLSreports
Top Page
International Consolidated Airlines
(OTC:ICAGY)
Rating:81Outperform
Price Target:
$11.50
▲(14.89% Upside)
International Consolidated Airlines (ICAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.35B
Dividend Yield2.09%
Average Volume (3M)9.06K
Price to Earnings (P/E)7.1
Beta (1Y)1.05
Revenue Growth9.38%
EPS Growth21.02%
CountryUS
Employees52,762
SectorIndustrials
Sector Strength84
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding2,321,100,000
10 Day Avg. Volume6,117
30 Day Avg. Volume9,061
Financial Highlights & Ratios
PEG Ratio3.80
Price to Book (P/B)3.30
Price to Sales (P/S)0.63
P/FCF Ratio5.73
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda5.99
Forecast
1Y Price Target
$11.50Price Target Upside14.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
International Consolidated Airlines Business Overview & Revenue Model
Company DescriptionInternational 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 operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 531 aircraft. The company was incorporated in 2009 and is based in Madrid, Spain.
How the Company Makes MoneyInternational Consolidated Airlines Group generates revenue primarily through the sale of airline tickets for passenger travel across its network of airlines. The company operates under multiple brands that cater to different market segments, from premium services to low-cost options, allowing it to capture a diverse customer base. In addition to passenger revenue, IAG earns money through its cargo operations, transporting goods and freight globally. Ancillary services such as in-flight sales, seat selection, and baggage fees further contribute to its income. Strategic partnerships and participation in international alliances, such as the Oneworld alliance, enhance its global connectivity and market reach, driving additional revenue through code-sharing and joint business agreements. Moreover, IAG benefits from economies of scale in its operations, leveraging its size to negotiate favorable terms with suppliers and optimize its cost structure.
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: -0.60%|
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue and profit growth, improved operating margins, and positive shareholder returns. However, some challenges remain, particularly in U.S. leisure demand, operational disruptions, and tax impacts in Europe.Q2-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Revenue grew by 8% to just under EUR 16 billion, with an operating profit increase of 43.5% year-on-year to EUR 1.9 billion. Q2 delivered EUR 1.68 billion in operating profit, an increase of 35.4%.
Improved Operating Margins
Operating margin increased by 2.9 percentage points to 11.8%, supported by a transformation program and improved customer offerings.
Significant Shareholder Returns
EUR 1.5 billion in cash has been returned to shareholders through dividends and share buybacks, with adjusted EPS growing by 70%.
Strong Performance Across Businesses
Aer Lingus, British Airways, and Iberia all reported increases in operating profit, with notable gains in operating margins.
Cargo and Loyalty Business Growth
IAG Cargo prioritized premium products, and IAG Loyalty reported a 9% improvement in operating profit, excluding changes in VAT accounting.
Positive Cash Flow and Debt Reduction
Generated EUR 2.1 billion in free cash flow, with net debt decreasing to EUR 5.5 billion from EUR 7.5 billion at year-end.
Sustainability Initiatives
Secured over 200,000 tonnes of sustainable aviation fuel for 2025, 25% more than last year, and signed a Scope 3 agreement with Microsoft.
Negative Updates
Challenges in U.S. Economy Leisure Demand
Some softness in U.S. point-of-sale economy leisure demand, although partially offset by strong premium cabin performance.
Impact of One-Day Heathrow Closure
A EUR 50 million impact from the one-day closure of Heathrow in March.
Mixed Fleet Complexity for Vueling
Vueling will operate a mixed fleet temporarily, which may lead to inefficiencies and additional costs.
Air Traffic Control and Geopolitical Disruptions
Ongoing challenges from air traffic control, particularly in France, and geopolitical disruptions in the Middle East and Ukraine.
Impact of Taxes in Northern Europe
Increased taxes in the Netherlands have impacted demand, showing difficulty in passing on costs to consumers.
Company Guidance
During the International Airlines Group's half-year results call for 2025, the company highlighted several key performance metrics and strategic initiatives. Revenue increased by 8% to nearly EUR 16 billion, driven by strong demand and growth across various segments, including passenger and cargo services. Operating profit reached EUR 1.878 billion, reflecting an improvement of EUR 569 million, or 43.5% year-on-year, with a notable Q2 contribution of EUR 1.68 billion. The operating margin saw a 2.9-percentage-point increase to 11.8%, supported by a robust transformation program. Additionally, adjusted earnings per share (EPS) grew by 70%, and the company announced EUR 1.5 billion in shareholder returns through dividends and buybacks. The balance sheet remains strong, with net leverage at 0.7x. The group also reported a 60% rise in pre-exceptional profit after tax to EUR 1.3 billion, driven by lower finance costs and FX benefits. Looking ahead, IAG aims for operating margins of 12% to 15% and is focused on sustainable shareholder returns, maintaining robust financial health, and continuing digital and sustainability investments.International Consolidated Airlines Financial Statement Overview
Summary
International Consolidated Airlines has demonstrated strong financial performance with significant revenue and profit growth, and effective cash flow management. The high debt-to-equity ratio is a concern but is offset by impressive return on equity and efficient operations.Income Statement
International Consolidated Airlines has demonstrated a substantial recovery in its financial performance, with total revenue growing from $29.45 billion in 2023 to $32.1 billion in 2024, resulting in a revenue growth rate of 8.73%. The gross profit margin stands at 23.61%, while the net profit margin is 8.51%, indicating strong profitability relative to revenue. The EBIT margin of 13.34% and EBITDA margin of 21.27% further highlight efficient operations and cost management. These metrics reflect robust profitability and a positive growth trajectory, positioning the company strongly in the transportation sector.85
Very Positive
Balance Sheet
The company's balance sheet is marked by a relatively high debt-to-equity ratio of 2.81, reflecting significant leverage, which poses potential risks in terms of financial stability. However, the return on equity (ROE) is impressive at 44.26%, signaling effective use of equity to generate profits. The equity ratio of 14.09% indicates a moderate level of shareholder equity in relation to total assets. The company's ability to manage its liabilities and equity efficiently is evident, though the high leverage warrants careful monitoring to mitigate risks.72
Positive
Cash Flow
International Consolidated Airlines showcases strong cash flow management, with a free cash flow growth rate of 169.39% from 2023 to 2024. The operating cash flow to net income ratio is 2.33, reflecting robust cash generation relative to net income, while the free cash flow to net income ratio of 1.30 indicates healthy cash flow available for investment and debt repayment. These metrics underscore the company's strong cash position and ability to support its operations and strategic initiatives.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.72B | 32.10B | 29.45B | 23.07B | 8.46B | 7.81B |
| Gross Profit | 8.31B | 7.58B | 7.91B | 5.36B | 164.00M | -1.10B |
| EBITDA | 5.07B | 6.83B | 4.43B | 2.20B | -2.25B | -5.08B |
| Net Income | 2.91B | 2.73B | 2.65B | 431.00M | -2.93B | -6.93B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 43.80B | 37.68B | 39.30B | 34.41B | 30.26B |
| Cash, Cash Equivalents and Short-Term Investments | 9.80B | 9.80B | 6.81B | 9.57B | 7.91B | 5.88B |
| Total Debt | 0.00 | 17.34B | 16.08B | 19.98B | 19.61B | 15.68B |
| Total Liabilities | -6.18B | 37.63B | 34.40B | 37.28B | 33.56B | 28.95B |
| Stockholders Equity | 6.18B | 6.17B | 3.27B | 2.02B | 840.00M | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 3.20B | 3.56B | 1.32B | 960.00M | -885.00M | -5.24B |
| Operating Cash Flow | 4.62B | 6.37B | 4.86B | 4.83B | -141.00M | -3.30B |
| Investing Cash Flow | 0.00 | -2.50B | -3.42B | -3.46B | -181.00M | 1.56B |
| Financing Cash Flow | 0.00 | -1.18B | -5.19B | -56.00M | 2.23B | 3.67B |
International Consolidated Airlines Technical Analysis
Positive
10.01
Price Trends
9.43
Positive
8.34
Positive
7.77
Positive
Market Momentum
0.16
Positive
55.79
Neutral
61.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAGY, the sentiment is Positive. The current price of 10.01 is below the 20-day moving average (MA) of 10.07, above the 50-day MA of 9.43, and above the 200-day MA of 7.77, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAGY.
International Consolidated Airlines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $32.37B | 15.04 | 27.12% | 1.32% | 10.61% | 37.32% | |
81 Outperform | $23.35B | 7.11 | 56.20% | 2.09% | 9.38% | 21.02% | |
81 Outperform | $34.52B | 7.67 | 30.07% | 1.19% | 3.01% | -0.90% | |
80 Outperform | $28.77B | 8.81 | 27.70% | ― | 4.23% | 13.13% | |
64 Neutral | $10.64B | 16.01 | 5.48% | 2.12% | 2.72% | -24.90% | |
58 Neutral | $7.68B | 15.09 | -21.27% | ― | 1.50% | ― | |
49 Neutral | $15.71B | 44.99 | 4.30% | 2.44% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
ICAGY
International Consolidated Airlines
10.01
5.87
141.79%
DAL
Delta Air Lines
53.63
14.79
38.08%
RYAAY
Ryanair Holdings
64.80
23.98
58.75%
LUV
Southwest Airlines
29.56
4.81
19.43%
UAL
United Airlines Holdings
87.98
46.52
112.20%
AAL
American Airlines
11.73
1.87
18.97%
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.