International Consolidated Airlines Group (LSE:IAG) Experiences 13% Weekly Dip Amid Air Europa Stake Sale Talks

International Consolidated Airlines Group (LSE:IAG) saw its share price decline by 13% over the past week, possibly influenced by ongoing M&A discussions and market volatility. The company is contemplating selling a 20% stake in Air Europa. Meanwhile, its interest in TAP Air Portugal could face delays due to upcoming elections. The broader market has been volatile, reacting to factors such as anticipated tariffs from the Trump administration. Although major indexes like the Dow and S&P 500 generally performed positively, IAG's strategic considerations and sector-specific challenges may have contributed to its recent decline.

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Over the three-year period, International Consolidated Airlines Group (IAG) has delivered a total return of 86.82%, showcasing a substantial growth in share price and dividends. This performance stands out, especially given its outperformance against the UK airlines industry and the broader UK market over the past year. A series of strategic initiatives have shaped this trajectory. In early 2024, IAG's partnership with Plug and Play for the Hangar 51 Accelerator program emphasized innovation in sustainability, aligning operations with future-oriented goals.

Furthermore, IAG's financial robustness was highlighted by a share repurchase program worth €1 billion announced in February 2025, which demonstrated commitment to boosting shareholder value. Significant earnings growth in the past fiscal year, including Q3 2024 revenue reaching €9.33 billion, helped solidify its financial standing. These initiatives, despite challenges like political factors affecting potential acquisitions, have collectively driven IAG's impressive performance over the longer term.

Examine International Consolidated Airlines Group's earnings growth report to understand how analysts expect it to perform.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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