London, Jan 28, 2026, 09:06 GMT — Regular session
- IAG shares dropped roughly 0.7% in early London trading, underperforming several travel sector rivals.
- Oil prices climbed further, driven by supply concerns following a U.S. winter storm, keeping fuel costs under the spotlight.
- The next hurdles: airlines’ latest demand signals and IAG’s results due on Feb. 27.
International Consolidated Airlines Group (IAG), the parent company of British Airways and Iberia, dipped in early London trading Wednesday as investors balanced rising oil prices against strong airline demand reports from other markets.
Shares dropped 0.72% to 413.40 pence, slipping from the previous close of 416.40 pence, LSE.co.uk data show. 1
Why it matters now: this week, airlines have been reacting to two key factors — the direction of fuel prices and the strength of premium demand. Both shift rapidly, with little advance notice.
Brent crude, the global oil benchmark, nudged up again following a near 3% surge the day before. Traders remain focused on storm-related supply disruptions in the U.S. and rising tensions in the Middle East. “Once supply fears ease, selling pressure is likely to return,” said Toshitaka Tazawa, an analyst at Fujitomi Securities. 2
Ryanair raised its fare-growth forecast this week, citing a solid kickoff to 2026 bookings. CFO Neil Sorahan said they expect to make up the 7% drop from last year—and add another one or two points on top. 3
American Airlines highlighted a pickup in premium-seat demand and a return of corporate travel in the U.S., but also flagged that a significant winter storm is expected to hit near-term capacity and revenue. 4
In London, airline stocks showed a mixed bag. easyJet climbed 1.25%, but Wizz Air fell 1.55%, pointing to company-specific factors rather than a broad sector trend. 5
IAG’s immediate focus remains on costs—jet fuel, staffing, and the durability of pricing power as the shoulder season approaches. Investors are also keen to see if premium cabins can continue to compensate for weaker budget demand should consumer spending falter.
The downside scenario is straightforward. A sudden spike in oil prices, new operational disruptions from severe weather, or flare-ups forcing extended flight routes can quickly squeeze margins — and airlines seldom manage to pass these costs on immediately.
IAG’s next major event is its FY-2025 results on Feb. 27. Investors will be watching closely for guidance on unit revenue, fuel costs and hedging strategies, plus any news on cash returns. 6
