London, Jan 26, 2026, 09:29 GMT — Regular session
- IAG shares dropped roughly 1.3% in early trading, continuing their slide from the highs seen earlier this month
- European travel and leisure shares edged lower as investors weighed geopolitical risks alongside policy cues from the week
- Ryanair’s optimistic booking update and shifts in oil prices set the stage ahead of IAG’s upcoming results
International Consolidated Airlines Group (ICAG.L), the parent company of British Airways, slipped 1.3% to 412.7 pence by 0929 GMT, down from a close of 418.3 pence. Shares fluctuated between 412.6 and 419.9 pence, holding around 6% below their 52-week peak of 438.6. (Investing)
Travel stocks kicked off the week weak, with Europe’s travel and leisure sector slipping 0.6%. Broader European equities held firm as investors digested last week’s tariff concerns and braced for the U.S. Federal Reserve’s policy announcement later this week. (Reuters)
IAG holders are left wondering if the market is factoring in weaker ticket yields through spring or simply holding steady. With no new company-specific news in the last 24 hours, traders are relying on broader sector trends and fuel prices for guidance.
Ryanair kicked off the week by raising its forecast for average fare growth, citing robust early bookings for 2026. Chief Financial Officer Neil Sorahan described consumer demand as “very strong” and noted there’s no sign of travelers pulling back. (Reuters)
That lends some support to the European airline sector, but it doesn’t close the discussion on IAG’s business mix. Investors often see IAG as a more cyclical play, given its long-haul focus and larger premium cabin segment, which can be more volatile when economic conditions deteriorate.
Fuel remains a major wild card—and it’s weighing on the market. Oil prices climbed again Monday following last week’s surge, driven by U.S. weather disruptions and a fresh geopolitical risk premium. Phillip Nova’s Priyanka Sachdeva noted that outages and rising tensions continue to “tickle” prices, despite ongoing concerns about a surplus in 2026. (Reuters)
Offsets exist, and the market is aware. Airlines frequently hedge a portion of their fuel costs, and strong fares help absorb price jumps. Yet if crude prices stay firm amid volatile demand figures, the sector can swiftly lose ground.
The downside is clear-cut: rising fuel costs, softer yields, and any drop in transatlantic demand would pinch margins through the summer ramp-up. A dip in consumer confidence or new geopolitical tensions and airspace restrictions could quickly impact bookings.
IAG’s next milestone is its FY-2025 results on Feb. 27. Investors will zero in on guidance for 2026 pricing, capacity, and costs, as well as any news on shareholder returns. (Iairgroup)
