We Lower IAG's FVE to Reflect Higher Fuel Costs and Demand Headwinds From the War in Ukraine

International Airlines Group is a European airline group flying under the British Airways, Iberia, Aer Lingus, and Vueling brands, with its main airport hubs at London Heathrow, London Gatwick, Madrid, Barcelona, and Dublin. The group is the highest quality of the European legacy airlines, achieving industry-leading margins and returns on invested capital due to its focus on fleet efficiencies and cost containment. The group entered the coronavirus pandemic in better financial health than its peers, allowing it the flexibility to better navigate the crisis. We believe the group can utilize the downturn to extract further cost efficiencies, driving EBIT growth of 3.5% per year to 2026 from 2019 precoronavirus levels.