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International Consolidated Airlines Group S.A. (ICAGY) Q2 2026 Earnings Call Transcript
International Consolidated Airlines (IAG) share price dropped to 414p and then bounced back after the company published mixed financial results amid the ongoing US-Iran war. IAG was trading at 435p at the time of writing, down by 12% from its highest point this year.
International Airlines Group said the conflict weighed on capacity in the first half, but its British Airways business was boosted by corporate travelers avoiding the Middle East.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) and other European airline shares could have further to rise as lower fuel costs and resilient travel demand improve the sector's earnings outlook heading into the second half of the year, according to UBS. The Swiss bank said investors had become more constructive on the sector over the past month, helped by a sharp decline in oil prices and growing confidence that consumers remain willing to spend on travel despite economic uncertainty.
Investors have continued to unwind bearish bets against European airlines over the past month, according to Citi. The bank published fresh positioning data, drawn from its quantitative team, showing how investors are betting on the sector.
International Consolidated Airlines Group S.A. (ICAGY) Shareholder/Analyst Call Transcript
International Consolidated Airlines Group S.A. delivered robust Q1 results, with operating profit up to €351 million and resilient premium passenger demand. Its strong balance sheet, 70% fuel hedge for 2026, and limited Middle East exposure position it favorably versus EU peers amid ongoing geopolitical risks. Q2 booked revenue aligns with historical levels, net debt/EBITDA improved to 0.5x, and FCF yield stands at 15%, supporting continued buybacks. With a supportive valuation, we remain buyers.
Shares in International Consolidated Airlines Group SA (LSE:IAG), the owner of British Airways and Iberia, rose 6% to 408p after the company announced an offer to repurchase the entirety of its outstanding 2028 convertible bond, a move that would meaningfully reduce its diluted share count. IAG has offered to buy back the full €825 million principal of its 1.125% convertible bond, due May 2028, at a repurchase price of €138,950 per €100,000 nominal, broadly in line with the current market price and subject to adjustments for share price movements and accrued interest.
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