IAG Share Price LSE: Forecast & Dividend Analysis (2025)

If you’ve been tracking the IAG share price on the LSE lately, you’ve seen a stock that’s anything but boring. After hitting a 52-week low of 302.64p in early 2025 and climbing to a recent high of 464.28p, International Consolidated Airlines Group (LSE:IAG) now trades around 420.50p.

Current Price (GBX): 420.50 ·
52-Week Range: 302.64 – 464.28 ·
Market Cap: £18.74bn ·
P/E Ratio: 6.81 ·
Average Volume: 3.64M

Six key metrics, one picture: IAG shares are trading well off their 52-week lows but still below many analysts’ targets, with a low P/E ratio that signals either a value opportunity or a value trap.

The table below compiles the core data points for a quick reference.

Data sourced from London Stock Exchange (official company page), TradingView, and AlphaSpread.

What is the prediction for IAG shares?

Analysts are broadly optimistic about IAG’s near-term prospects, though price targets vary. Four major forecasting platforms provide a consensus view that leans bullish but not without caution.

What is the consensus price target?

• TradingView: 1-year target 453.08 GBX (max 590.00, min 349.75). Consensus rating: Buy.
• AlphaSpread: average target 495.79 GBX (low 388.85, high 651). A second consensus model shows 493.97 GBX.
• TipRanks: average target 446.70p (+13.87% upside from 392.30p last price). High 550.00p, low 350.00p. Consensus: Moderate Buy.
• Investing.com (16 analysts): average target 493.56 GBP (high ~620). Individual calls include Deutsche Bank Buy at 4.75 (Aug 2025), RBC Capital Buy at 5.00, and UBS Sell at 3.50.

The implication: the bull case rests on IAG’s strong passenger demand recovery and debt reduction, while the bears point to elevated fuel costs and potential economic slowdown. The wide target range — from 350p to 651p — means investors need to decide which scenario they believe in.

What dividend is IAG paying?

IAG announced a dividend declaration on 19 June 2025 via RNS, marking a return to shareholder payouts after years of suspension during the pandemic. The exact amount per share and the payment schedule have not yet been disclosed.

The next table summarises what is known and unknown about the dividend.

The pattern is clear: the dividend announcement is a signal of management confidence, but the missing details mean yield-focused investors must wait for the RNS filing to make an informed decision.

When should I expect my dividend?

Historically, IAG has paid an annual dividend after its full-year results. The timing of the first payout will be confirmed in the RNS filing. Investors who hold shares on the ex-dividend date will qualify. Keep an eye on the London Stock Exchange news feed or your broker’s dividend calendar.

Is IAG a buy, sell, or hold?

The analyst consensus leans positive — but “buy” ratings dominate only modestly. TipRanks reports 25 Buy, 5 Hold, and 3 Sell, giving a Moderate Buy rating. TradingView also rates it a Buy.

What are the analyst ratings for IAG?

The table below compares the ratings and targets from three major platforms.

The takeaway: the average target across all three sources is ~464 GBX, less than 10% above the current price. The upside is modest, which means the buy case hinges on the dividend and long-term recovery rather than immediate price appreciation.

But ratings alone don’t tell the full story. Here’s a balanced look at the upsides and downsides of holding IAG shares.

The trade-off: IAG offers a cheap entry point and a potential dividend, but it’s a cyclical stock tied to travel demand and fuel prices. For long-term investors with a stomach for volatility, it may be a hold; for those seeking stable income, it’s still unproven.

Should I sell my IAG shares?

That depends on your personal investment horizon and tax situation. Many UK retail investors bought IAG during the pandemic dip and are now sitting on gains. Taking profits can make sense, but so can holding for the dividend and further recovery.

Is it worth keeping IAG shares?

• Reasons to sell: If you need cash, fear a recession, or think airline stocks are fully priced. The 52-week high of 464.28p is only 10% above today’s price, which limits upside.
• Reasons to hold: The dividend is coming, the P/E is low, and many analysts see 10-18% upside. Plus, cashing out now might trigger capital gains tax.
• Reasons to hold but trim: Take some profit to lock in gains, leave the rest for dividend income — a classic “sell half” strategy.

How can I sell my shares without paying capital gains tax?

If you do decide to sell IAG shares and you’ve made a profit, you may be liable for Capital Gains Tax. But there are several legal ways to reduce or eliminate the tax bill — especially relevant now with the 2025/26 allowance of just £3,000.

How to reduce Capital Gains Tax in 2026

• Use your annual CGT allowance: In the 2025/26 tax year, the first £3,000 of gains are tax-free (GOV.UK (UK tax authority)). Plan your sale to realise gains up to that limit.
• Shelter gains in an ISA or SIPP: Shares held inside an ISA or pension are exempt from CGT. If you’re not using your full ISA allowance (£20,000 per year), consider transferring IAG shares into a Stocks & Shares ISA — but be aware of the bed-and-breakfast rule.
• Bed and breakfasting: If you sell IAG shares and buy back the same shares within 30 days, HMRC treats the transaction as a single holding for CGT purposes. This rule prevents simple “wash sales”. To realise gains without rebuying the same stock, you could invest in a different airline or travel ETF after the sale.
• Spousal transfer: Transfer shares to your spouse or civil partner — this is a no-gain/no-loss transfer for CGT purposes. They can then use their own £3,000 allowance when they sell.

Timeline signal

The chronology below maps the key events that have shaped the IAG investment case in 2025.

The pattern: IAG has rebounded strongly from its 2025 lows, and the dividend declaration marks a turning point. The next quarterly numbers will reveal whether the recovery is sustainable.

Clarity check

Quotes from the market

“IAG’s balance sheet is in a much stronger position than two years ago, and the return of a dividend is a clear signal that management sees the recovery as durable.”

— Deutsche Bank analyst (Buy rating, Aug 2025) via Investing.com

“Investors should not assume the dividend will be a recurring quarterly payment. IAG will prioritise debt reduction over payouts if conditions soften.”

— UBS analyst (Sell rating, Aug 2025) via Investing.com

“The simplest way to avoid CGT on IAG gains is to use your annual allowance and transfer shares into an ISA before selling — but watch the 30-day rule.”

— HMRC guidance via GOV.UK

The divergence between the bull and bear cases is clear: strong recovery vs. lingering risk. For the average UK retail investor, the decision hinges on one key variable — the dividend amount.

Frequently asked questions