London, February 2, 2026, 09:32 GMT — Regular session
- IAG shares are climbing in early London trading, beating a softer European market.
- Crude prices have slipped sharply, drawing attention amid signs of easing tensions between the U.S. and Iran.
- All eyes are now on IAG’s full-year results due later this month, along with any news on costs and returns.
International Consolidated Airlines Group (IAG) shares climbed 1% to 422.5 pence (GBX) by 09:17 GMT, bouncing between 414.2 and 425.0 pence earlier. The stock has gained roughly 25% over the last year. (Investors Chronicle)
This matters now since fuel ranks among airlines’ top expenses. Sharp crude price swings prompt investors to rapidly adjust margin forecasts, often without any new company updates.
This time, the backdrop is tangled. A widespread commodity selloff has dented risk appetite, yet the steep drop in oil prices offers a rare boost for carriers—who buy jet fuel in dollars but sell tickets in various currencies.
Brent crude dropped $3.38, or 4.9%, to $65.94 a barrel by 05:28 GMT following comments from U.S. President Donald Trump that Iran is “seriously talking” with Washington, which eased concerns about supply disruptions. IG analyst Tony Sycamore noted the market took this as a sign that the geopolitical risk premium baked into prices was coming down. (Reuters)
European stocks opened lower, weighed down by commodity-related sectors amid sharp drops in energy and metal prices. The STOXX 600 fell 0.4%, Reuters noted, with selling pressure also fueled by Trump’s pick of Kevin Warsh as the next U.S. Federal Reserve chair. (Reuters)
IAG, the parent company of British Airways and Iberia, often acts like a high-beta play on leisure travel and long-haul routes, particularly over the Atlantic. Currency shifts in the pound and euro also weigh in, given that its costs and revenues aren’t confined to a single currency.
Investors are setting their sights on IAG’s FY-2025 results due Feb. 27, expecting guidance to have a bigger impact on the share price than the usual commodity swings. The full-year report is scheduled for that day, according to the company’s investor calendar. (IAIR Group)
During the call, investors will zero in on unit revenue trends, cost pressures, and capacity strategies. Management’s take on fuel and foreign exchange assumptions will also be under scrutiny. And any remarks about shareholder returns won’t go unnoticed.
The downside is obvious: a shock driven by commodities can trigger a wider risk-off wave, dragging down cyclicals like airlines. If volatility undermines consumer confidence or squeezes credit, travel stocks could lose gains rapidly — and oil prices might bounce back just as swiftly.
The week ahead is packed with events that could shake markets. Reuters pointed to central bank meetings on Thursday — the European Central Bank and Bank of England — plus U.S. payroll data due Friday. These are key factors that might influence the dollar and crude ahead of IAG’s earnings on Feb. 27. (Reuters)
