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International Consolidated Airlines
(OTC:ICAGY)
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Rating:70Outperform
Price Target:
$13.00
▲(12.36% Upside)
Action:Reiterated
Date:08/03/26
The score is primarily supported by improved financial performance (profitability and strong free cash flow), plus attractive valuation (low P/E). These positives are tempered by above‑average balance‑sheet leverage risk and mixed near‑term technical momentum, while the latest earnings call indicates resilient guidance but notable fuel and competitive headwinds.
Positive Factors
Consistent strong free cash flow
Sustained positive operating and free cash flow through 2022–2025, with 2025 FCF up ~31.9% YoY, supports capex funding, debt reduction and shareholder returns. Durable cash conversion gives flexibility to absorb shocks and invest in transformation over the next 2–6 months and beyond.
Negative Factors
Elevated balance‑sheet leverage
Despite improvement since 2021, elevated absolute debt and renewed debt increase in 2025 constrain financial flexibility. High leverage magnifies downside in demand shocks or cost spikes, limiting ability to fund capex or buybacks without pressure on liquidity or credit metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent strong free cash flow
Sustained positive operating and free cash flow through 2022–2025, with 2025 FCF up ~31.9% YoY, supports capex funding, debt reduction and shareholder returns. Durable cash conversion gives flexibility to absorb shocks and invest in transformation over the next 2–6 months and beyond.
Read all positive factors
International Consolidated Airlines (ICAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.63B
Dividend Yield1.94%
Average Volume (3M)43.35K
Price to Earnings (P/E)4.8
Beta (1Y)1.15
Revenue Growth7.58%
EPS Growth11.16%
CountryUS
Employees75,786
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.95
Shares Outstanding2,201,917,200
10 Day Avg. Volume56,589
30 Day Avg. Volume43,346
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)2.90
Price to Sales (P/S)0.69
P/FCF Ratio7.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.5
Revenue Forecast (FY)$39.61B
International Consolidated Airlines Business Overview & Revenue Model
Company Description
Through its numerous subsidiaries, International Consolidated Airlines Group S.A. delivers extensive passenger and freight air transportation across a wide geographical span, reaching destinations in the United Kingdom, Spain, Ireland, the United ...
How the Company Makes Money
IAG makes money primarily by selling air transportation and related travel services. Its largest revenue stream is passenger revenue from ticket sales across its airlines, spanning short-haul and long-haul routes; this is influenced by factors suc...
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but resilient picture: strong cash generation, a materially improved Loyalty business, net debt reduction, and disciplined cost and hedging actions underpin confidence that IAG can deliver full-year margin targets. However, near-term headwinds — notably a 12.5% fuel cost rise, FX translation losses, restructuring costs and weaker results at Aer Lingus and Vueling — have materially impacted H1 profits and highlight risks in competitive short‑haul markets. Management’s positive guidance and balance sheet strength offset several operational challenges, leaving a balanced outlook.Positive Updates
Solid H1 Operating Profit and Margin Guidance
Reported H1 operating profit of EUR 1,757 million; H1 operating margin of 10.9% (sector-leading for a first half). Management expects full-year operating margin within the 12%–15% target range despite current headwinds.
Negative Updates
Profit Declines and Q2 Weakness
H1 operating profit was down EUR 121 million year-on-year; Q2 operating profit fell EUR 274 million YoY to EUR 1,406 million with margin reduction from 19% last year to 15.8% this quarter. Adjusted profit after tax before exceptions down 11.9% and adjusted EPS down 10.9%.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid H1 Operating Profit and Margin Guidance
Reported H1 operating profit of EUR 1,757 million; H1 operating margin of 10.9% (sector-leading for a first half). Management expects full-year operating margin within the 12%–15% target range despite current headwinds.
Read all positive updates
Company Guidance
The call reiterated guidance to deliver a full‑year operating margin within the 12–15% target range despite H1 headwinds, after reporting H1 operating profit of EUR 1,757m and a H1 margin of 10.9% (Q2 operating profit EUR 1,406m, margin 15.8%); group revenue grew 1.0% in H1 (Q1 +1.9%, Q2 +0.2%), passenger revenue rose by EUR 828m, cargo was down EUR 23m (yields +3.3%), and IAG Loyalty delivered GBP 239m profit (+25%) at a 19.3% margin; fuel unit cost rose 12.5% (hedging gains EUR 769m in H1, ~60% of the fuel increase recovered through pricing/costs, ~70% hedged for the remainder of 2026 and ~40% for 2027); capacity is guided flat for the year (H1 slightly down) and H2 is ~57% booked (in line with last year); free cash flow in H1 was EUR 2,905m (up EUR 808m), net debt fell to EUR 4.7bn (from EUR 5.9bn) with net leverage 0.6x and gross leverage 1.8x, full‑year CapEx is expected at ~EUR 3.4bn (H1 CapEx EUR 1,291m; 16 deliveries expected), ROIC target remains 13–16%, 2025 total dividend was EUR 441m (final EUR 0.05/share), ~EUR 800m of an EUR 1.4bn excess‑cash return completed, and H1 included EUR 175m of exceptional costs with adjusted EPS down ~10.9%.International Consolidated Airlines Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.57B | 31.90B | 32.10B | 29.45B | 23.07B | 8.46B |
| Gross Profit | 9.40B | 6.82B | 7.58B | 7.91B | 5.36B | 164.00M |
| EBITDA | 8.64B | 7.34B | 6.83B | 4.43B | 2.20B | -2.25B |
| Net Income | 4.46B | 3.21B | 2.73B | 2.65B | 431.00M | -2.93B |
Balance Sheet | ||||||
| Total Assets | 46.11B | 42.83B | 43.80B | 37.68B | 39.30B | 34.41B |
| Cash, Cash Equivalents and Short-Term Investments | 9.18B | 8.32B | 9.80B | 6.81B | 9.57B | 7.91B |
| Total Debt | 13.87B | 19.86B | 17.34B | 16.08B | 19.98B | 19.61B |
| Total Liabilities | 37.48B | 35.24B | 37.63B | 34.40B | 37.28B | 33.56B |
| Stockholders Equity | 8.63B | 7.58B | 6.17B | 3.27B | 2.02B | 840.00M |
Cash Flow | ||||||
| Free Cash Flow | 4.14B | 3.02B | 3.56B | 1.32B | 960.00M | -885.00M |
| Operating Cash Flow | 7.30B | 6.33B | 6.37B | 4.86B | 4.83B | -141.00M |
| Investing Cash Flow | -2.01B | -2.66B | -2.50B | -3.42B | -3.46B | -181.00M |
| Financing Cash Flow | -4.14B | -4.24B | -1.18B | -5.19B | -56.00M | 2.23B |
International Consolidated Airlines Technical Analysis
Positive
11.57
Price Trends
11.85
Negative
10.93
Positive
10.89
Positive
Market Momentum
-0.09
Positive
48.91
Neutral
73.95
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 11.57 is below the 20-day moving average (MA) of 11.91, below the 50-day MA of 11.85, and above the 200-day MA of 10.89, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $57.50B | 14.38 | 19.33% | 0.91% | 10.28% | -12.67% | |
70 Outperform | $25.63B | 4.84 | 74.01% | 1.95% | 7.58% | 11.16% | |
70 Outperform | $39.38B | 11.32 | 22.50% | ― | 8.48% | 6.74% | |
68 Neutral | $29.06B | 13.56 | 20.27% | 1.74% | 13.24% | -1.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $22.00B | 27.09 | 11.27% | 1.60% | 9.46% | 137.74% | |
46 Neutral | $10.11B | -31.16 | 8.29% | ― | 7.53% | -157.37% |
* Industrials Sector Average
ICAGY
International Consolidated Airlines
11.80
1.82
18.26%
DAL
Delta Air Lines
92.77
40.47
77.38%
RYAAY
Ryanair Holdings
60.19
-2.71
-4.30%
LUV
Southwest Airlines
48.70
19.33
65.83%
UAL
United Airlines Holdings
132.62
44.96
51.29%
AAL
American Airlines
16.56
4.92
42.27%
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.