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International Consolidated Airlines
(LSE:IAG)
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Rating:71Outperform
Price Target:
477.00 p
▲(7.94% Upside)
Action:Reiterated
Date:08/03/26
The score is driven primarily by solid financial performance (strong margins and positive multi-year cash generation) and very attractive valuation (low P/E). These positives are tempered by balance-sheet leverage and weakening/soft technical signals (below key moving averages with negative MACD), while the latest earnings call supports a moderately positive outlook but highlights meaningful near-term headwinds (fuel costs, margin pressure, and restructuring charges).
Positive Factors
Profitability and Cash Generation
Strong profitability and several years of positive operating and free cash flow provide internal funding for fleet investment, debt reduction and shareholder returns, improving resilience through normal airline cycles.
Negative Factors
Elevated Leverage
The debt-heavy capital structure limits financial flexibility and amplifies downside if travel demand weakens or financing costs rise. Although leverage has improved, deleveraging remains important for long-term resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Cash Generation
Strong profitability and several years of positive operating and free cash flow provide internal funding for fleet investment, debt reduction and shareholder returns, improving resilience through normal airline cycles.
Read all positive factors
International Consolidated Airlines (IAG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£18.86B
Dividend Yield1.78%
Average Volume (3M)9.73M
Price to Earnings (P/E)4.8
Beta (1Y)1.40
Revenue Growth3.70%
EPS Growth7.19%
CountryUK
Employees75,786
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.98
Shares Outstanding4,374,810,000
10 Day Avg. Volume8,308,226
30 Day Avg. Volume9,727,920
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
£566.67Price Target Upside28.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.56
Revenue Forecast (FY)£29.43B
International Consolidated Airlines Business Overview & Revenue Model
Company Description
International Consolidated Airlines Group SA is a holding company, which engages in the provision of passenger and freight air transportation services. It operates through the following segments: British Airways, Iberia, Vueling, Aer Lingus, and O...
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:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call conveys an overall positive but cautious tone: IAG delivered resilient H1 results with strong free cash flow, a materially improved balance sheet, and standout performance from IAG Loyalty, which collectively underpin confidence in achieving full-year targets. However, material headwinds—most notably a ~12.5% rise in fuel unit cost, Q2 margin compression, regional competitive pressure (impacting Aer Lingus, Vueling and Iberia), exceptional restructuring costs and FX drag—temper near-term performance. Management emphasized disciplined cost actions, hedging, capacity discipline and a pathway to restore margins, suggesting confidence that the business model and balance sheet strength will mitigate these challenges.Positive Updates
Resilient Revenue Growth and Demand
Group revenue grew 1.0% in H1 (Q1 +1.9%, Q2 +0.2%) driven by strong passenger demand, with passenger revenue up EUR 828m at constant currency and broad long-haul outperformance.
Negative Updates
Fuel Cost Surge and Margin Pressure
Fuel unit cost rose 12.5% following the Middle East conflict; Q2 operating profit fell EUR 274m YoY and Q2 margin declined from 19% to 15.8%; H1 operating margin was 10.9% (below the 12%–15% full-year target range midpoint).
Read all updates
Q2-2026 Updates
Positive
Negative
Resilient Revenue Growth and Demand
Group revenue grew 1.0% in H1 (Q1 +1.9%, Q2 +0.2%) driven by strong passenger demand, with passenger revenue up EUR 828m at constant currency and broad long-haul outperformance.
Read all positive updates
Company Guidance
IAG reiterated guidance to deliver a full‑year operating margin within its 12–15% target range despite headwinds, expecting to recover around 60% of the recent fuel increase through pricing and cost actions; they are ~57% booked for H2, ~70% hedged for the remainder of 2026 and ~40% hedged for 2027 (H1 hedging gains €769m), and expect 16 aircraft deliveries for the year (one slipped into 2027) with full‑year CapEx ~€3.4bn (longer‑term averages ~€4.9bn in 2027–28 and €5.6bn in 2029–31, reverting to ~€4.5bn pa after 2032). They flagged strong cash generation and balance‑sheet metrics (H1 free cash flow €2.905bn, net debt €4.7bn, net leverage 0.6x, gross leverage 1.8x), reaffirmed capital priorities (target net leverage <1.8x, gross 1.5–2.0x, ROIC 13–16%), commitment to a sustainable ordinary dividend (2025 total €441m, final €0.05/sh) and continuation of the €1.4bn excess cash return (≈€800m completed).International Consolidated Airlines Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.68B | 32.61B | 32.10B | 29.45B | 23.07B | 8.46B |
| Gross Profit | 9.43B | 6.98B | 7.58B | 6.70B | 4.10B | -1.02B |
| EBITDA | 8.41B | 7.51B | 6.83B | 6.21B | 3.50B | -823.00M |
| Net Income | 4.47B | 3.28B | 2.73B | 2.65B | 431.00M | -2.93B |
Balance Sheet | ||||||
| Total Assets | 46.11B | 42.90B | 43.80B | 37.68B | 39.30B | 34.41B |
| Cash, Cash Equivalents and Short-Term Investments | 9.23B | 8.33B | 9.80B | 6.81B | 9.57B | 7.91B |
| Total Debt | 13.87B | 14.27B | 17.34B | 16.08B | 19.98B | 19.61B |
| Total Liabilities | 37.48B | 35.30B | 37.63B | 34.40B | 37.28B | 33.56B |
| Stockholders Equity | 8.63B | 7.60B | 6.17B | 3.27B | 2.02B | 840.00M |
Cash Flow | ||||||
| Free Cash Flow | 4.06B | 3.09B | 3.56B | 1.32B | 960.00M | -885.00M |
| Operating Cash Flow | 7.17B | 6.47B | 6.37B | 4.86B | 4.83B | -141.00M |
| Investing Cash Flow | -1.96B | -2.72B | -2.50B | -3.42B | -3.46B | -181.00M |
| Financing Cash Flow | -4.06B | -4.33B | -1.18B | -5.21B | -56.00M | 2.23B |
International Consolidated Airlines Peers Comparison
UnderperformOutperform
Sector (63)
GB:IAG
International Consolidated Airlines
431.20
43.20
11.13%
GB:EZJ
EasyJet
670.20
213.97
46.90%
GB:WIZZ
Wizz Air Holdings
1,075.00
-235.00
-17.94%
International Consolidated Airlines Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback, Updates Share Capital Structure
Positive
Aug 17, 2026
International Consolidated Airlines Group has continued executing its €500 million share buyback programme, repurchasing 5,768,667 ordinary shares between 10 and 14 August 2026 on the London and Madrid exchanges. The shares will be held in t...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback, Updates Share Capital Structure
Positive
Aug 10, 2026
International Consolidated Airlines Group has continued executing its €500 million share buyback programme, repurchasing 5,815,259 ordinary shares between 3 and 7 August 2026 on the London and Madrid exchanges. The shares, bought at prices r...
Business Operations and StrategyRegulatory Filings and Compliance
IAG Updates Share Capital and Voting Rights Structure
Neutral
Aug 3, 2026
International Consolidated Airlines Group has disclosed its latest share capital and voting rights structure, confirming that it holds 213,644,829 treasury shares with a nominal value of €0.10 each. Excluding these treasury shares, the compa...
Stock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback with 5.8m-Share Repurchase
Positive
Aug 3, 2026
International Consolidated Airlines Group has repurchased 5,809,545 ordinary shares between 27 and 31 July 2026 on the London and Madrid exchanges as part of its previously announced €500 million share buyback programme. The shares, bought w...
Business Operations and StrategyDividendsFinancial Disclosures
IAG Delivers Robust H1 2026 Despite Fuel and Geopolitical Headwinds
Positive
Jul 31, 2026
International Consolidated Airlines Group reported a robust first‑half performance for 2026, supported by strong travel demand and its diversified mix of airline brands and markets. The group continues to leverage efficient operations, a low...
Stock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback With Latest Share Repurchases
Positive
Jul 27, 2026
International Consolidated Airlines Group has repurchased 5,807,316 ordinary shares between 20 and 24 July 2026 on the London and Madrid exchanges as part of its previously announced €500 million buyback. The shares, bought at prices around ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback With New Treasury Share Purchases
Positive
Jul 20, 2026
International Consolidated Airlines Group has continued executing its previously announced €500 million share buyback programme, repurchasing 4,476,935 ordinary shares between 14 and 17 July 2026 on the London and Madrid exchanges. The share...
Business Operations and StrategyPrivate Placements and Financing
IAG Retires 2028 Convertible Bonds via Full Cash-Settled Conversion
Positive
Jul 16, 2026
International Consolidated Airlines Group has moved to retire its 1.125% senior unsecured convertible bonds due 2028 by triggering an optional redemption, prompting all bondholders to exercise their conversion rights. The company then chose to set...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500 Million Buyback With New Share Purchases
Positive
Jul 13, 2026
International Consolidated Airlines Group has repurchased 6,746,059 ordinary shares between 6 and 10 July 2026 on the London and Madrid exchanges, as part of its previously announced €500 million buyback programme. The shares, acquired withi...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
IAG Advances €500m Buyback as Treasury Shares Rise
Positive
Jul 6, 2026
International Consolidated Airlines Group, S.A. has continued executing its €500 million share buyback programme with the repurchase of 8,441,400 ordinary shares between 29 June and 3 July 2026 on the London and Madrid exchanges. The trades ...
Regulatory Filings and Compliance
IAG Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 6, 2026
International Consolidated Airlines Group has reported that it now holds 190,977,760 shares in treasury, each with a nominal value of €0.10, leaving 4,420,691,767 shares in issue that carry voting rights at general meetings. The company̵...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
IAG Advances €500m Buyback with Fresh Treasury Share Purchases
Positive
Jun 29, 2026
International Consolidated Airlines Group has repurchased 7,671,926 ordinary shares between 22 and 26 June 2026 on the London and Madrid exchanges as part of its €500 million share buyback programme. The shares, acquired at prices around the...
Executive/Board ChangesRegulatory Filings and Compliance
IAG Adds JP Morgan Executive Daniel Pinto to Board
Positive
Jun 25, 2026
International Airlines Group has strengthened its board with the appointment of Daniel Pinto, effective 18 June 2026, and disclosed his external directorships in line with listing requirements. Pinto currently serves as vice chairman of JP Morgan ...
Executive/Board ChangesShareholder Meetings
IAG Reshapes Board Committees After Shareholder Meeting
Positive
Jun 25, 2026
International Consolidated Airlines Group has refreshed its board and committee structure following its 18 June 2026 shareholders’ meeting, re-electing all directors except Nicola Shaw, who stepped down at the end of her one-year term, and a...
Regulatory Filings and Compliance
IAG Discloses Share Sale by IAG Loyalty Chief Under Market Rules
Neutral
Jun 24, 2026
International Consolidated Airlines Group disclosed that Adam Daniels, a person discharging managerial responsibilities and the Chair and CEO of IAG Loyalty, has conducted a transaction involving the company’s ordinary shares. The notificati...
Stock BuybackFinancial Disclosures
IAG Expands Buyback with Fresh €500m Share Repurchases
Positive
Jun 22, 2026
International Consolidated Airlines Group has repurchased 3,408,172 ordinary shares between 15 June and 19 June 2026 on the London and Madrid exchanges, as part of its previously announced €500 million share buyback programme. The acquired s...
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...
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.