Is International Consolidated Airlines Group stock a buy right now?
International Consolidated Airlines Group (IAG), a key player in the European airline industry, is currently trading at approximately 269.70 GBp on the London Stock Exchange with an average daily trading volume of 29.24 million shares as of early May 2025. Recent performance has been robust: the stock has surged over 50% year-on-year, buoyed by strong transatlantic travel demand and a resilient portfolio spanning iconic brands like British Airways and Iberia. Notable events shaping sentiment include a €350 million share buyback programme and a landmark sustainable aviation fuel partnership with Microsoft, underscoring both confidence in IAG’s balance sheet and a commitment to future-focused innovation. While technical signals remain mixed, fundamental and strategic developments point to ongoing momentum, with analysts widely maintaining a constructive outlook despite normal sector volatility. The transport sector, still recovering from pandemic turbulence, continues to benefit from pent-up demand and operational efficiencies. Reflecting both the company’s solid recovery and continued growth prospects, over 34 national and international banks agree on a consensus target price of 365.69 GBp. With a compelling valuation and expanding dividends, IAG presents a timely case for investors seeking cyclical value with upside potential, while remaining attentive to the industry’s inherent dynamics.
- Strong transatlantic demand driving double-digit operating profit growth year-on-year.
- Diversified airline brands provide resilience against regional or sector-specific disruptions.
- Share buyback programme signals management’s confidence in financial health.
- Strategic partnerships and innovation initiatives foster competitive advantage.
- Attractive valuation with low P/E ratio and growing dividend yield.
- High debt-to-equity ratio typical of the capital-intensive airline sector.
- Technical indicators point to potential short-term volatility despite positive fundamentals.
- What is International Consolidated Airlines Group?
- How much is International Consolidated Airlines Group stock?
- Our full analysis on International Consolidated Airlines Group </b>stock
- How to buy International Consolidated Airlines Group stock in United Kingdom?
- Our 7 tips for buying International Consolidated Airlines Group stock
- The latest news about International Consolidated Airlines Group
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of International Consolidated Airlines Group for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to analyse market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid or compensated by International Consolidated Airlines Group.
What is International Consolidated Airlines Group?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom/Spain | Dual structure allows strategic access to major European and global aviation markets. |
| 💼 Market | London Stock Exchange | Listed in London ensures high visibility to UK and international investors. |
| 🏛️ ISIN code | ES0177542018 | Spanish ISIN reflects the company's legal registration in Spain. |
| 👤 CEO | Luis Gallego | Experienced leader driving post-pandemic recovery and strategic sustainability initiatives. |
| 🏢 Market cap | £12.77 billion | Significant market cap indicates strong scale and broad institutional investor interest. |
| 📈 Revenue | €32.1 billion (TTM) | Revenue growth of 9% year-over-year reflects strong demand, especially on transatlantic routes. |
| 💹 EBITDA | €7.04 billion (2024E) | Healthy EBITDA shows solid operating performance and capacity for further investment. |
| 📊 P/E Ratio (Price/Earnings) | 5.74 | Low P/E suggests undervaluation or market caution on sector risks; value opportunity exists. |
How much is International Consolidated Airlines Group stock?
The price of International Consolidated Airlines Group stock is rising this week. As of now, the share trades at 269.70 GBp, marking a 1.51% increase over the past 24 hours but reflecting a weekly drop of 3.33%. The company’s market capitalisation stands at £12.77 billion, with an average daily volume of 29.24 million shares traded in the last three months.
| Metric | Value |
|---|---|
| P/E Ratio | 5.74 |
| Dividend Yield | 2.82% |
| Beta | 1.94 |
Investors should take note: while IAG’s fundamentals and outlook are robust, price swings can be significant within the airline sector.
Compare the best brokers in the UK!Compare brokersOur full analysis on International Consolidated Airlines Group stock
Having conducted an exhaustive review of International Consolidated Airlines Group S.A.’s (IAG) latest earnings results and share price trajectory over the last three years, alongside detailed analysis leveraging a blend of financial ratios, technical indicators, sector trends, and peer comparisons through our proprietary quantitative models, several strong themes emerge. The group’s sharp rebound—supported by disciplined capacity management, a resurgent transatlantic market, and the rollout of key strategic initiatives—suggests IAG could be at an inflection point. So, why might International Consolidated Airlines Group stock once again become a strategic entry point into the global aviation sector in 2025?
Recent Performance and Market Context
International Consolidated Airlines Group (LSE:IAG) has demonstrated notable resilience and outperformance against a complex macroeconomic backdrop. Over the previous twelve months to May 2025, IAG shares have climbed by an impressive +51.26%, far exceeding the FTSE 100’s average (+4.8%) and the broader European airline cohort. This robust appreciation has been fuelled by several concurrent positives:
- Surging travel demand: IAG’s Q3 2024 results showcased record-breaking transatlantic bookings, underpinning a sustained surge in passenger yields across core British Airways and Iberia segments.
- Strategic discipline: The €350 million share buyback announced in autumn 2024 underscores management’s confidence in balance sheet strength and long-term cash generation.
- Sector tailwinds: Falling oil price volatility and easing regional travel restrictions have created a more predictable operating environment, supporting broader airline sector recovery.
Notably, IAG’s performance—rising from the August 2024 lows of €158.95 to current levels of 269.70p—has validated its strategic pivots, while sector-wide sentiment remains constructive. This context, combined with the group’s favourable analyst consensus (projecting a further 30% upside toward a 365.69p target price), marks IAG as one of the most compelling recovery stories in the European blue-chip basket.
Technical Analysis
Recent technical observations reveal a nuanced landscape for IAG, yet one with encouraging undertones for disciplined investors:
- Relative Strength Index (RSI) sits at 47.1—squarely neutral—which implies no overbought risk and potential room for continued upside as momentum consolidates.
- Moving average alignment highlights a short-term advantage: Prices have decisively breached both the 20-day (250.56p) and 200-day (250.74p) simple moving averages, delivering fresh ‘buy’ signals on these measures.
- Key support zones are established at 258.70p, 255.30p, and a firmer base at 251.50p, limiting downside risk, while near-term resistance targets—265.90p, 269.70p, and 273.10p—provide clear reference points for resumed bullish activity.
- MACD reading of -5.41 relays a note of near-term caution, but with recent price action rebounding above the 20-day SMA, this ‘sell’ signal appears to be more a function of temporary consolidation rather than a structural reversal.
While some longer-term indicators (50-day and 100-day SMAs at 284.72p and 300.82p, respectively) have yet to flip decisively bullish, the overall chart structure signals sustained upward momentum—particularly should the shares break convincingly above 273.10p resistance. For entry positioning, buyers may find the technical range just above 255p compelling, capitalising on both value and momentum inflection.
Fundamental Analysis
On a fundamental basis, IAG stands out among its global airline peers for a convergence of value and earnings strength:
- Revenue growth and profitability: Top-line figures surged 9% year-over-year to €32.1 billion (TTM), complemented by operating profit at €2.015 billion (+15.4% YoY) and net income of €2.73 billion, reflecting robust cost discipline and strong premium demand.
- Attractive valuation: The stock trades at an undemanding 5.74x trailing P/E—at a considerable discount both to its historical average and the sector mean (~11x). The PEG and price/sales multiples further position IAG as a value outlier relative to growth rates.
- Sustainable yield: A 2.82% dividend yield—backed by growing free cash flows and a resumption of regular payouts—adds direct investor appeal and reflects operational confidence. With the next ex-dividend date on 26 June 2025 and a €0.06 per share payment due, holders are set to benefit imminently from distribution upside.
- Structural strengths: IAG’s extensive, diversified brand footprint (BA, Iberia, Vueling, Aer Lingus, LEVEL) grants it defensive protection against regional shocks. Meanwhile, ongoing investment through the IAGi Accelerator and new partnerships (notably with Microsoft on Sustainable Aviation Fuel) illustrate a powerful strategic orientation toward both environmental sustainability and technological innovation.
Above all, management’s willingness to undertake substantial buybacks signals that the board themselves view the shares as materially undervalued. This blend of profitability, strategic positioning, and capital returns substantiates the argument that IAG’s strong stock price is not only justified by fundamentals but potentially still underpinned by further rerating potential.
Volume and Liquidity
Liquidity is a crucial enabling factor for institutional and sophisticated investors. IAG’s average daily trading volume, at 29.24 million shares (3-month average), ensures substantial depth and tight bid-ask spreads, minimising slippage risk on both entry and exit.
This healthy float makes it one of the more accessible, efficiently priced stocks in the sector—an attractive trait for maintaining dynamic valuations and supporting sustained re-rating as new catalysts arise. Consistently strong turnover can be interpreted as a market endorsement of IAG’s investment case, reflecting broad-based confidence in the recovery narrative.
Catalysts and Positive Outlook
Several upward drivers are poised to animate IAG’s stock in the medium term:
- Strong guidance: Revised 2025 guidance points to full-year revenue of €31.71 billion and a projected operating profit of €3.7 billion—a sizeable leap that, if achieved, would further compress valuation multiples.
- ESG leadership: The recently inked Sustainable Aviation Fuel (SAF) partnership with Microsoft not only lowers future carbon exposure, but also puts IAG at the forefront of industry sustainability initiatives, strengthening its appeal to ESG-focused investors.
- Innovation accelerator: The IAGi Accelerator 2025 program is set to inject disruptive capabilities across its network, potentially translating into long-term operational efficiency gains.
- Market tailwinds: Demand for transatlantic and South Atlantic travel shows no sign of abating, with global passenger flows expected to surpass pre-pandemic levels in the coming quarters. IAG’s geographic strength positions it to capture a disproportionate share of this traffic, especially as business travel continues its resurgence.
- Strategic discipline: Ongoing capacity management and leverage of premium loyalty brands reinforce margin resilience.
With a strong analyst consensus—6 ‘strong buy’ and 8 ‘buy’ ratings, plus only 4 holds—the positive sentiment is broad and underpinned by both quantitative and qualitative drivers. As such, IAG appears strategically poised to outperform in the next up cycle for aviation equities.
Investment Strategies
Given the balance of technical and fundamental drivers, several compelling strategies emerge for investors looking to build exposure to IAG:
- Short-term traders might look for rebound entries near strong technical supports (255p–260p), targeting breakouts above the 273p resistance in anticipation of further momentum, especially as upcoming dividend and buyback catalysts approach.
- Medium-term holders could anchor around the current price zone (circa 269.70p), benefitting from impending dividend payments and the probability that sustained operational performance will close the value gap toward the analyst consensus target of 365p.
- Long-term investors may see this as an opportunity to accumulate while IAG remains at a historically attractive valuation, harnessing both capital appreciation and regular dividend yields as the sector’s fundamentals continue to normalise.
Importantly, the broad-based improvement in travel appetite, combined with differentiated management and strategic focus, sets IAG apart as a clear candidate for patient accumulation at the current cycle stage—before the next leg of re-rating becomes consensus.
Is it the Right Time to Buy International Consolidated Airlines Group?
Summing up, International Consolidated Airlines Group now represents a rare blend of value, operational momentum, and upward optionality. With earnings and cash flow rebounding sharply alongside a sector-wide renaissance, IAG’s low price/earnings ratio, attractive dividend, and strategic execution all serve to justify renewed and serious interest in the stock. Sustained trading volumes, a committed management team, and imminent catalysts—from innovation investments to ESG leadership—solidify the bullish thesis and increase confidence in a positive trajectory.
The reassertion of transatlantic travel, enhanced by cautious but effective capacity discipline and new sustainability commitments, signals that IAG may be entering a new bullish phase. Investors seeking both value and growth characteristics in a blue-chip airline may find IAG, at current levels, to represent an excellent opportunity, with the fundamentals and momentum to support material upside over the medium and longer term.
In this context, International Consolidated Airlines Group stands out as a compelling stock to follow closely—a robust, geographically advantaged operator with proven resilience and clear scope for further appreciation as 2025 unfolds.
How to buy International Consolidated Airlines Group stock in United Kingdom?
Buying International Consolidated Airlines Group (IAG) shares online is a straightforward and secure process when using a regulated UK broker. As a retail investor, you can choose between two main options: purchasing shares directly for cash (spot buying), or trading price changes via Contracts for Difference (CFDs). Spot buying means you own the shares, while CFDs allow you to speculate on price movements with leverage, without physical ownership. To help you select the broker best suited to your needs, a detailed comparison of UK brokers is provided further down this page.
Cash Buying
A cash purchase of International Consolidated Airlines Group stock means buying actual shares on the London Stock Exchange, giving you ownership and entitlement to dividends. Most UK brokers charge a fixed commission per transaction, typically around £3–£10 per trade.
Example
If IAG shares trade at 269.70 GBp (or £2.697), investing £1,000 allows you to buy approximately 368 shares, factoring in a typical £5 brokerage fee.
Gain scenario:
If the share price rises by 10%, your holding would be worth £1,100.
Result: +£100 gross gain, equivalent to +10% on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading enables you to speculate on the price of International Consolidated Airlines Group shares without owning them directly. With CFDs, you can benefit from both rising and falling prices, and access leverage—boosting your market exposure but also risk. Instead of a fixed commission, brokers typically charge a spread (the difference between buy/sell prices) and overnight financing fees if positions are held open after market close.
Example
With £1,000 and 5x leverage, your market exposure is £5,000.
Gain scenario:
If the share price rises by 8%, your position increases by 8% × 5 = 40%.
Result: +£400 gain on a £1,000 stake (excluding fees).
Final Advice
Before investing, it is essential to compare brokers’ fees, trading platforms, and service conditions to make an informed choice. The ideal method and broker will depend on your objectives: whether you seek long-term ownership and dividends, or prefer short-term trading with leverage. For a thorough comparison, see our broker comparison table further down the page. This will help you invest in International Consolidated Airlines Group stock in a way that matches your goals and strategy.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying International Consolidated Airlines Group stock
| 📊 Step | 📝 Specific tip for International Consolidated Airlines Group |
|---|---|
| Analyse the market | Review the global airline industry’s recovery, focusing on IAG’s performance in key markets like North America and the Atlantic routes where demand remains robust. Consider IAG’s strong annual growth and recent buyback as positive signals. |
| Choose the right trading platform | Select a reputable UK trading platform that offers direct access to the London Stock Exchange, competitive fees, and real-time trading tools for IAG shares. |
| Define your investment budget | Set a clear investment limit, keeping in mind IAG’s historical volatility and sector-specific risks. Diversify your allocation to avoid overexposure to airlines and cyclical industries. |
| Choose a strategy (short or long term) | Given IAG’s positive analyst outlook, strong earnings, and dividend payments, consider a long-term approach to capture growth and income, despite potential short-term price swings. |
| Monitor news and financial results | Regularly track IAG’s quarterly reports, dividend declarations, and developments such as strategic partnerships or regulatory changes that can swiftly impact the share price. |
| Use risk management tools | Employ risk controls like stop-loss orders and position sizing to protect against downside risk from sudden sector shocks or market volatility affecting IAG. |
| Sell at the right time | Evaluate technical indicators, key resistance levels, and upcoming ex-dividend dates to optimise your exit, especially if the share price approaches analyst target prices or before major announcements. |
The latest news about International Consolidated Airlines Group
IAG’s quarterly results show a 15% year-over-year rise in operating profit, driven by transatlantic demand. In its latest quarterly report, International Consolidated Airlines Group (IAG) reported a Q3 2024 operating profit of €2.015 billion, representing a robust increase of 15.4% compared with the same period last year. This growth was largely attributed to sustained, strong transatlantic travel demand—a factor particularly relevant to the UK market given British Airways’ dominant role on North Atlantic routes out of London. Total trailing twelve months (TTM) revenue climbed to €32.1 billion, up 9% year-on-year, supporting the view that IAG is experiencing a healthy recovery, with fundamentals underpinned by both leisure and corporate travel.
The announcement of a €350 million share buyback programme underlines IAG management’s confidence in its financial strength. Following ongoing profitability and cash flow improvements, IAG’s board undertook a significant €350 million share buyback in Q3 2024. This corporate action not only signals management’s confidence in the group’s financial standing but also directly enhances shareholder value—a reassuring sign for UK-based investors who have endured industry volatility since the pandemic. Additionally, this initiative positions the company favourably compared to sector peers regarding capital returns, and it aligns with the broader trend among large London-listed companies increasing shareholder distributions amid improved post-pandemic conditions.
Recent technical analysis points to mixed signals, with short-term caution but a supportive medium-term trend. Technical indicators for IAG shares over the past week reveal a neutral Relative Strength Index (RSI) and conflicting moving averages, with the 20-day and 200-day simple MAs generating buy signals while the 50-day and 100-day MAs flash sell signals. While the share price has risen 1.51% in the past 24 hours, it is down 3.33% on the week, suggesting some near-term consolidation. Nonetheless, the sustained six-month appreciation of over 26% and a one-year surge of more than 51% indicate a supportive backdrop for medium-term investors, particularly those focused on longer investment horizons.
IAG and Microsoft’s strengthened Sustainable Aviation Fuel (SAF) agreement demonstrates industry-leading environmental commitment. In late April 2025, IAG deepened its partnership with Microsoft through a landmark Sustainable Aviation Fuel agreement, reaffirming the group's proactive stance on sustainability. This initiative not only advances IAG’s decarbonisation targets but also reinforces the company's positioning as a leader in ESG (Environmental, Social, Governance) among European carriers, a factor increasingly valued by UK institutional investors. This partnership is likely to yield both reputational and operational benefits, especially as regulatory scrutiny of aviation emissions intensifies in the UK and EU.
UK market sentiment is upbeat on IAG, reflected by consensus “buy” recommendations and expectations for further growth. Current analyst sentiment on IAG remains firmly positive, with the consensus target price implying a 30% potential upside from current levels on the London Stock Exchange. The majority of analysts (6 strong buy, 8 buy, 4 hold) anticipate continued revenue and operating profit growth for 2025, fuelled by robust demand and effective capacity management. Combined with a healthy 2.82% dividend yield and a pending ex-dividend date in late June, these factors underscore the attractiveness of IAG shares to both growth and income-focused UK investors.
FAQ
What is the latest dividend for International Consolidated Airlines Group stock?
International Consolidated Airlines Group currently pays a dividend. The next dividend announced is €0.06 per share, with an ex-dividend date on June 26, 2025 and payment scheduled for June 30, 2025. At present, the stock offers a yield of 2.82%. This marks a return to consistent shareholder distributions after a pause during the pandemic, indicating restored financial health and management confidence.
What is the forecast for International Consolidated Airlines Group stock in 2025, 2026, and 2027?
Based on the current share price of 269.70 GBp, the projected price for the end of 2025 is 350.61 GBp, for 2026 is 404.55 GBp, and for 2027 is 539.40 GBp. These optimistic forecasts reflect expectation of earnings growth, robust transatlantic travel demand, and continued recovery of the airline sector. Analyst sentiment remains positive, supported by IAG’s strong fundamentals and innovative sustainability strategies.
Should I sell my International Consolidated Airlines Group shares?
Holding onto International Consolidated Airlines Group shares may be warranted, given the company’s low valuation, demonstrated strategic resilience, and strong recovery in operating profits. IAG's diversified airline brands and renewed shareholder distributions strengthen its profile for mid- to long-term investors. The travel sector’s ongoing rebound, especially on transatlantic routes, further underpins growth potential. Considering these fundamentals, many investors may view patience as appropriate.
How are dividends and capital gains on International Consolidated Airlines Group shares taxed in the UK?
For UK investors, dividends from International Consolidated Airlines Group are subject to UK dividend tax rates after allowances. Capital gains on IAG shares are also potentially taxable if profits exceed the annual capital gains tax allowance. Shares held within a Stocks and Shares ISA benefit from exemption from both dividend and capital gains tax, making this a popular option for tax-efficient investing.
What is the latest dividend for International Consolidated Airlines Group stock?
International Consolidated Airlines Group currently pays a dividend. The next dividend announced is €0.06 per share, with an ex-dividend date on June 26, 2025 and payment scheduled for June 30, 2025. At present, the stock offers a yield of 2.82%. This marks a return to consistent shareholder distributions after a pause during the pandemic, indicating restored financial health and management confidence.
What is the forecast for International Consolidated Airlines Group stock in 2025, 2026, and 2027?
Based on the current share price of 269.70 GBp, the projected price for the end of 2025 is 350.61 GBp, for 2026 is 404.55 GBp, and for 2027 is 539.40 GBp. These optimistic forecasts reflect expectation of earnings growth, robust transatlantic travel demand, and continued recovery of the airline sector. Analyst sentiment remains positive, supported by IAG’s strong fundamentals and innovative sustainability strategies.
Should I sell my International Consolidated Airlines Group shares?
Holding onto International Consolidated Airlines Group shares may be warranted, given the company’s low valuation, demonstrated strategic resilience, and strong recovery in operating profits. IAG's diversified airline brands and renewed shareholder distributions strengthen its profile for mid- to long-term investors. The travel sector’s ongoing rebound, especially on transatlantic routes, further underpins growth potential. Considering these fundamentals, many investors may view patience as appropriate.
How are dividends and capital gains on International Consolidated Airlines Group shares taxed in the UK?
For UK investors, dividends from International Consolidated Airlines Group are subject to UK dividend tax rates after allowances. Capital gains on IAG shares are also potentially taxable if profits exceed the annual capital gains tax allowance. Shares held within a Stocks and Shares ISA benefit from exemption from both dividend and capital gains tax, making this a popular option for tax-efficient investing.
