RBC Lifts IAG Price Target to 500p Amid European Carrier Sentiment Shift
Royal Bank of Canada has increased its price target for International Consolidated Airlines Group (IAG) to 500p, citing improving sentiment toward European carriers and IAG's stronger financial footing.
The bank reiterated its Outperform rating on the airline group, which owns British Airways, Iberia, and Aer Lingus. The higher target reflects potential double-digit percentage gains if IAG delivers on earnings and cash flow expectations.
IAG's share price has more than doubled over two years, from below 200p in 2024 to around 427p in August 2026. Analysts attribute this growth to strong leisure and visiting friends and relatives traffic, as well as British Airways' long-haul network, Iberia's strength on routes to Latin America, and Vueling's short-haul European presence.
RBC's stance follows earlier adjustments by other global banks, some of which had trimmed price targets amid fuel price volatility and macroeconomic uncertainty. Despite ongoing cost pressure in areas such as labor and airport charges, IAG has maintained healthy margins through disciplined capacity deployment and cost efficiency programs.