International Consolidated Airl (ICAGY) Stock Price & How to Invest
Last updated October 2026
Short answer
ICAGY is the US over-the-counter ADR of International Consolidated Airlines Group (IAG), the owner of British Airways, Iberia, Aer Lingus, Vueling and LEVEL. Each ADR represents two ordinary shares and traded near ~$11.04 in late October 2026, valuing the group at roughly ~$24 billion. It is a cheap-looking, cash-generative airline stock whose 2026 story is fuel costs and the Middle East, not demand.
ICAGY stock price
As of 2026-10-28, International Consolidated Airl (ICAGY) last closed at $10.80, up 1.2% over the past year. Over the past 52 weeks it has traded between $9.14 and $12.97.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or International Consolidated Airl's investor relations page. Walnut is informational, not investment advice.
What does International Consolidated Airl (ICAGY) do?
International Consolidated Airlines Group, usually called IAG, is the Madrid-domiciled, London-listed holding company formed in 2011 by the merger of British Airways and Iberia. It has since added Aer Lingus, the Barcelona low-cost carrier Vueling, the long-haul budget brand LEVEL and IAG Loyalty, which runs the Avios currency and the British Airways Holidays business. The group flies around 600 aircraft, anchors its network on London Heathrow, Madrid and Dublin, and earns roughly 30% of its capacity on the North Atlantic, where it runs a joint business with American Airlines. ICAGY is a sponsored ADR traded over the counter in the US; each ADR equals two ordinary shares, so its dollar price tracks the London price of IAG (around ~411p) multiplied by two and converted at the pound-dollar rate.
2025 was a record year: revenue rose 3.5% to ~€33.2 billion, operating profit before exceptional items climbed 13% to ~€5.0 billion at a 15.1% margin, and profit after tax reached ~€3.3 billion. 2026 has been harder. The first half delivered revenue of ~€16.1 billion (up 1%) and operating profit before exceptional items of ~€1.76 billion, down 6.4%, as a sharp fuel price rise and the suspension of most Middle East routes hit the second quarter, when operating profit fell 16% to ~€1.41 billion. Management still guides to a full-year operating margin inside its 12% to 15% target range, expects to recover around 60% of the higher fuel bill, and now plans flat capacity for the year. Third-quarter results, the seasonally biggest quarter, are due in early November.
The investment picture is a classic value-and-cash-return setup. On trailing figures the shares trade at roughly 7 times earnings, net debt has fallen to ~€4.7 billion (0.6 times EBITDA), and the company is part way through a €1.5 billion share buyback alongside a regular dividend. Bulls point to premium transatlantic demand, Iberia's Latin America strength and a fast-growing, capital-light Avios business. Bears point to fuel, labour costs, Aer Lingus losses, short-haul competition and the reality that airline earnings can swing hard with oil and geopolitics. Walnut is not an investment adviser; this is a description of the company, not a recommendation.
What's driving International Consolidated Airl (ICAGY)?
1. Premium North Atlantic demand
The North Atlantic is about 30.6% of IAG's capacity and its most valuable market. British Airways, Iberia and Aer Lingus share revenue on these routes with American Airlines (and Finnair) through a joint business, which lets the partners coordinate schedules and pricing. In the first half of 2026 North Atlantic capacity was roughly flat with passenger unit revenue up ~1.7% at an ~82% load factor, and management says long-haul markets should stay positive into the second half. Premium cabins, especially business class out of Heathrow, carry a disproportionate share of profit. British Airways actually grew its first-half operating profit to ~£885 million from ~£824 million, showing that the premium long-haul engine held up even as fuel costs rose.
2. IAG Loyalty and Avios
IAG Loyalty is the group's capital-light growth engine. It sells Avios points to banks, credit card issuers and retail partners, and those points are redeemed mainly on IAG flights. First-half 2026 operating profit rose ~25% to ~£239 million, Avios issuance grew ~15%, and the core loyalty revenue line grew ~7.7%, although the Holidays business slipped ~6.5% because of suspended Middle East destinations. Management targets more than 10% annual profit growth at a margin of around 19% and has set a medium-term goal of ~€1 billion of loyalty operating profit. Because co-brand card income is less sensitive to fuel than flying, a bigger Loyalty contribution tends to make group earnings steadier and supports a higher multiple over time.
3. Iberia, Latin America and transformation
Iberia has been the group's standout turnaround. It earned a ~16.2% operating margin in 2025 and is targeting ~€1.4 billion of operating profit by 2030 under its Flight Plan 2030. Latin America and the Caribbean, about 20.8% of group capacity, grew ~3.5% in the first half with an ~88.6% load factor, and Madrid's position as the main Europe to South America hub is hard to replicate. Iberia is also using new Airbus A321XLR narrowbodies to open thinner long-haul routes cheaply (its Q2 North Atlantic capacity rose ~18%). Group-wide, non-fuel unit costs fell ~1.3% in the half, and early-retirement and efficiency programmes at Iberia and British Airways are booked as exceptional costs now to lower the cost base later.
4. Cash returns and the balance sheet
IAG generated ~€3.1 billion of free cash flow in 2025 and ~€2.9 billion in the first half of 2026 alone, helped by the timing of aircraft deliveries. Net debt fell to ~€4.7 billion, net leverage is ~0.6 times EBITDA against a ceiling of 1.8 times, and total liquidity is ~€11.9 billion. That balance sheet funds a €1.5 billion excess cash return announced in February 2026, of which roughly €800 million was completed by mid-year, to be finished by February 2027. Issued shares excluding treasury fell from ~4.57 billion in February to ~4.45 billion by June. A shrinking share count means earnings per share can grow faster than profit, which is a large part of the bull case at a ~7 times earnings multiple.
What are the risks to International Consolidated Airl (ICAGY)?
Fuel is the largest single risk. IAG's 2026 fuel bill is guided at ~€8.3 billion to ~€8.6 billion depending on the forward curve, and the company only expects to recover around 60% of the increase through fares and cost actions, so every further spike in jet fuel flows partly into profit. Geopolitics is the second: the Middle East crisis forced the suspension of most routes to the Gulf, Israel and Jordan, cut Africa, Middle East and South Asia capacity ~17% in Q2, and hurt the Holidays business and Qatar Airways partner redemptions. A transatlantic slowdown, whether from a US recession, weaker consumer demand or currency moves, would hit the most profitable routes. Aer Lingus swung to a ~€34 million first-half operating loss amid North Atlantic competition and is mid-restructuring, while Vueling faces intense low-cost competition from Ryanair and others. Labour negotiations, Heathrow charges and slot policy, engine availability problems (Pratt & Whitney and Rolls-Royce), delayed Boeing deliveries, and rising carbon costs under EU ETS and CORSIA are all live issues. For US holders, ICAGY trades OTC with thinner liquidity, its dollar price also moves with sterling, and Spanish withholding tax can apply to dividends.
What is the International Consolidated Airl (ICAGY) forecast?
3 analysts publish price targets on ICAGY, averaging $13.96 against a $11.04 price as of October 2026, or +26.4%. The published targets run from $12.78 to $14.67, a narrow spread, and the ratings split 3 buy, 0 hold, 0 sell. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full ICAGY forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is ICAGY a buy or a sell?
We give no verdict on International Consolidated Airl. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Premium North Atlantic demand. The North Atlantic is about 30.6% of IAG's capacity and its most valuable market. The most optimistic published target, $14.67, assumes this works close to its best case.
The case against. Fuel is the largest single risk. The most pessimistic target, $12.78, is roughly what ICAGY is worth if this bites instead.
Read the full bull and bear case on ICAGY, including what would have to change to break either one. Walnut is not an investment adviser.
How is International Consolidated Airl (ICAGY) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see International Consolidated Airl's investor relations page or your broker.
- ADR price (2 ordinary shares): ~$11.04
- Market cap: ~$24B
- Revenue (TTM): ~€33.4B (~$39B)
- Operating profit before exceptionals (TTM): ~€4.9B
- P/E (TTM): ~7x
- Net debt / EBITDA: ~€4.7B / ~0.6x
Trailing figures combine full-year 2025 with the first half of 2026: revenue of ~€33.4 billion and pre-exceptional operating profit of ~€4.9 billion, after the first half fell ~6% on fuel. Profit after tax over the same span is roughly ~€3.1 billion, which against a ~$24 billion (~€21 billion) market value gives a single-digit P/E near 7 times. The 52-week range for ICAGY is about ~$9.10 to ~$13.07, so the ADR sits in the middle. A low multiple is normal for airlines because earnings are cyclical and exposed to fuel, which is why buybacks and the Avios business draw so much attention.
Who competes with International Consolidated Airl (ICAGY)?
European network carriers
Air France-KLM and Lufthansa Group are IAG's direct rivals for long-haul and business traffic out of Europe, each running a transatlantic joint venture with a US partner (Delta and United respectively). Both have historically earned lower margins than IAG, and both bid for a stake in TAP Air Portugal in 2026, a process IAG chose not to join.
Low-cost and short-haul airlines
Ryanair, easyJet and Wizz Air compete with Vueling, British Airways' short-haul network and Aer Lingus on European routes. Ryanair in particular sets the price floor in Spain and Ireland, and management describes short-haul markets as competitive into the second half of 2026, which shows up in Vueling's lower first-half profit.
US and Gulf long-haul carriers
Delta and United compete head on across the Atlantic, while American Airlines is IAG's joint-business partner rather than a rival. Emirates and Qatar Airways (in which IAG holds a ~25% stake) compete for Europe to Asia and Middle East flows, and Middle East disruption in 2026 reshaped that traffic for every carrier.
What stocks are similar to International Consolidated Airl (ICAGY)?
Other names that sit close to ICAGY: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in International Consolidated Airl (ICAGY)
There are three common ways to get ICAGY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so ICAGY sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where ICAGY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on International Consolidated Airl (ICAGY)
ICAGY offers a low-multiple, buyback-heavy way to own Europe's most profitable airline group, with the North Atlantic and Avios as the engines and fuel prices plus geopolitics as the swing factors.
More on International Consolidated Airl (ICAGY)
Whether ICAGY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ICAGY a buy or a sell?, and where the stock could go from here in the ICAGY stock forecast.
For income investors, whether ICAGY pays a dividend and how the payout looks is covered in does ICAGY pay a dividend? And to weigh ICAGY against a peer, read the full side-by-side comparisons: ICAGY vs IAG and ICAGY vs TAP.
Wondering how ICAGY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in International Consolidated Airl with AI
Connect the broker you already use and ask Walnut's AI how ICAGY fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is ICAGY?
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ICAGY is the ticker for the American Depositary Receipt of International Consolidated Airlines Group S.A., better known as IAG. IAG owns British Airways, Iberia, Aer Lingus, Vueling, LEVEL and IAG Loyalty, the business behind Avios points and British Airways Holidays. The company is incorporated in Spain, headquartered in Madrid and London, and its ordinary shares trade on the London Stock Exchange and the Spanish exchanges under the code IAG. In the US, ICAGY trades over the counter rather than on the NYSE or Nasdaq. Each ICAGY ADR represents two ordinary shares, and its price is quoted in US dollars, roughly ~$11.04 in late October 2026. That ADR structure lets US investors own IAG in a normal brokerage account without buying shares directly in London or Madrid.
How does the ICAGY ADR ratio work?
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One ICAGY ADR equals two IAG ordinary shares. To estimate the fair ADR price, take the London share price, multiply it by two and convert from pence to dollars. With IAG near ~411p in late October 2026, two shares are worth ~822p, or about £8.23, which at a pound-dollar rate of roughly 1.34 works out to about ~$11.0, in line with where ICAGY trades. Because of that link, the ADR moves with both the underlying share price and the exchange rate, so a weaker pound can lower the dollar price even when the London shares are flat. Arbitrage by market makers keeps the gap small, but OTC trading volume is thinner than in London, so bid-ask spreads on ICAGY can be wider, especially outside London trading hours.
How did IAG perform in its latest results?
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IAG's most recent report covers the first half of 2026, published on 31 July. Revenue rose ~1% to ~€16.1 billion, while operating profit before exceptional items fell ~6.4% to ~€1.76 billion, a ~10.9% margin versus ~11.8% a year earlier. The second quarter carried most of the pressure: operating profit fell ~16% to ~€1.41 billion as fuel costs jumped and routes to the Middle East were suspended. Profit after tax for the half was ~€1.03 billion, down ~21%. Bright spots included British Airways (operating profit up to ~£885 million), IAG Loyalty (up ~25%) and passenger unit revenue up ~2.4%. Free cash flow was very strong at ~€2.9 billion. The third-quarter update, usually the strongest of the year thanks to summer travel, is expected in early November 2026.
Does ICAGY pay a dividend?
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Yes. IAG reinstated its dividend in 2024 and pays an interim and a final dividend each year; the final 2025 dividend was paid in June 2026. On top of that, it has run a series of share buybacks, most recently a €1.5 billion excess cash return announced in February 2026, of which about €800 million had been completed by mid-year and the rest is due by February 2027. For ICAGY holders, dividends are passed through by the depositary bank in dollars, net of fees, and Spanish withholding tax may apply because IAG is a Spanish company. Part of that tax can sometimes be reclaimed or credited against US tax, depending on the holder's situation. The dividend yield has typically sat in the low single digits, so most of the cash return comes through buybacks.
Why is IAG's valuation so low?
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On trailing earnings IAG trades around ~7 times, well below the broad market, and that is typical for airlines. Investors apply low multiples because airline profits swing sharply with fuel prices, recessions, strikes and geopolitical shocks, as 2020 showed when IAG lost billions and had to raise capital. The 2026 fuel spike is a live reminder: a ~€8.3 billion to ~€8.6 billion fuel bill and only ~60% recovery mean higher oil feeds straight into profit. Large ongoing capital needs for new aircraft (about ~€3.4 billion of capex in 2026) also absorb cash. The bull argument is that IAG is structurally better than most peers, with margins of 12% to 15%, low leverage and a growing loyalty business, which could justify a higher multiple over time if earnings prove more stable.
How exposed is IAG to fuel prices and the Middle East?
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Heavily, in the short term. Fuel is IAG's biggest single cost, guided at ~€8.3 billion to ~€8.6 billion for 2026 depending on the forward curve used. The company hedges a large share of expected consumption on a rolling basis, which smooths but does not remove price spikes, and it expects to pass on around 60% of the increase through fares and cost savings. The Middle East crisis led British Airways, Iberia and Vueling to suspend most routes to the Gulf, Israel and Jordan, cutting capacity in the Africa, Middle East and South Asia region by ~17% in the second quarter. Iberia and British Airways redeployed aircraft to Japan, Latin America and the North Atlantic. The conflict also reduced Holidays bookings and Avios redemptions on partner Qatar Airways, although those businesses remained profitable.
Who are IAG's main competitors?
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In Europe, IAG's closest rivals are Air France-KLM and Lufthansa Group, the other two large network airline groups, each with its own transatlantic joint venture (with Delta and United respectively). On short-haul routes, Vueling, British Airways and Aer Lingus compete with low-cost carriers such as Ryanair, easyJet and Wizz Air, which keep fares under pressure, particularly in Spain and Ireland. Across the Atlantic, Delta and United are direct competitors, while American Airlines is a partner in IAG's joint business. On Europe to Asia routes, Gulf carriers like Emirates compete for connecting traffic. IAG also owns ~25% of Qatar Airways, which is both a partner and, in some markets, a competitor. In 2026 Air France-KLM and Lufthansa pursued a stake in TAP Air Portugal after IAG stepped back from bidding.
What comes next for ICAGY?
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The near-term catalyst is the third-quarter 2026 trading update in early November, which will show how much of the summer fuel spike IAG recovered and whether the full-year margin lands inside the 12% to 15% range. Watch commentary on fourth-quarter and 2027 bookings, especially premium transatlantic demand, and any change to fuel cost scenarios or hedging. Progress on the €1.5 billion buyback and any new capital return for 2027 will matter for per-share earnings. Operationally, look at Aer Lingus's restructuring, Vueling's response to low-cost competition, engine availability for Iberia, and delivery timing for Boeing 737s and 787s. Finally, oil prices, the pound-dollar rate and any reopening of Middle East routes can each move the ADR. Walnut describes these factors for research only and is not an investment adviser.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with International Consolidated Airl's investor relations page or your broker before making investment decisions.