London, Jan 22, 2026, 08:50 GMT
- IAG shares climbed roughly 2% in early London trading following a turbulent week for airline stocks
- Risk appetite remains fragile amid tariff news linked to Greenland and fluctuating oil prices
- Analysts have set their targets mostly in the mid-to-high 400 pence range ahead of IAG’s results on Feb. 27
International Consolidated Airlines Group (IAG), the parent company of British Airways, saw its shares climb early Thursday in London, pushing higher after a dip earlier this week. By 0835 GMT, the stock had gained 1.95%, trading at 428.2 pence, according to London South East data. 1
The move is significant as airline stocks kicked off the year jittery, with investors focused as much on fuel prices and overall risk appetite as on bookings. IAG is set to release its full-year results on Feb. 27, a key update that could recalibrate forecasts for demand and expenses ahead of the spring and summer travel surge. 2
Markets showed little tolerance for geopolitics this week after U.S. President Donald Trump reignited tariff threats against several European nations amid a dispute over Greenland. “The geopolitical risks … are shifting market perceptions of common alliances,” said Wasif Latif, chief investment officer at Sarmaya Partners, as stocks tumbled across major markets on Tuesday. 3
IAG dipped 1.8% to 403.2 pence by mid-morning Tuesday, after starting the session at 409.3 pence. Other airlines like easyJet and Lufthansa also fell, dragged down alongside the wider slide in European shares. 4
Fuel costs remain a key factor in the airline sector, with crude prices showing some movement. Brent crude closed up 1.53% at $64.92 a barrel, while U.S. WTI rose 1.51% to $60.34. The gains followed a temporary production halt at two Kazakhstan oilfields operated by Tengizchevroil, Reuters reported. Ajay Parmar, ICIS director of energy and refining, described the outage as “certainly disruptive for crude flows.” IG analyst Tony Sycamore added that stronger Chinese economic data “provided a lift to demand sentiment.” 5
Traders have been eyeing the charts just as closely as the news. According to MarketBeat, IAG pushed above its 200-day moving average on Monday — a key metric based on about 200 closing prices that many use to gauge trends — right before the stock’s recent volatility. 6
Not everyone shares Wall Street’s upbeat view, yet the sell-side remains mostly bullish. According to Investing.com, 14 out of 17 analysts have the stock pegged as a buy. The average 12-month price target stands near 494 pence, suggesting about mid-teens upside from current levels. 7
IAG’s trailing price-to-earnings ratio stands near 6.5, according to MarketBeat data — a straightforward indicator of what investors shell out per unit of profit. Its beta clocks in around 2.3, signaling this stock tends to swing more sharply than the overall market. 8
Airlines can turn things around quickly, though, and the usual suspects remain. A sudden spike in oil prices, a drop in consumer demand if trade tensions hit the broader economy, or new chaos at key hubs could swiftly squeeze margins. Plus, heavy debt loads mean there’s less cushion to weather any downturn.
Shares have bounced back close to recent peaks, hovering around 428 pence after closing at 420 pence previously, according to the latest market data. Investors are now eyeing the Feb. 27 earnings report, where IAG will reveal how the winter season fared and provide forecasts on cost trends.
