International Consolidated Airlines: First-Class Returns For An Economy-Priced Stock

Summary

• IAG shares have almost doubled in value this year, and are still trading on a P/E of just 6.8, thereby indicating incredible value.
• Management's positive outlook for the travel industry and disciplined capital use suggest further margin expansion may be on the cards, despite macroeconomic uncertainties and supply chain issues.
• The stock is trading at ratios that are sizeably lower than its peers, with multiple expansion set for the airline group if it continues to grow at its expected pace.

*For all intents and purposes, figures are in EUR and in adjusted terms, unless stated otherwise.

Up almost a whopping 100%, shares in British Airways owner, International Consolidated Airlines Group (OTCPK:ICAGY) (OTCPK:BABWF) have taken off this year. With

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.