London, Jan 25, 2026, 09:05 GMT — The market is closed
- IAG fell 2.8% to 418.3 pence in London on Friday.
- Brent closed 2.8% higher, driven by renewed concerns over Iranian supply tightening the market.
- Some Middle East flights have been rerouted or cancelled by airlines; British Airways, part of IAG, resumed Bahrain service on Jan. 24.
Shares of British Airways parent company International Consolidated Airlines Group (IAG.L) dropped 2.8% on Friday, closing at 418.3 pence. This pullback trimmed some of the week’s earlier gains as travel stocks lost momentum heading into the weekend. 1
Why it matters now: airlines face a tight window to absorb the latest spike in fuel prices ahead of Monday’s open, with crude markets sensitive to political shifts that can quickly disrupt supply. Brent crude futures climbed $1.82, or 2.8%, settling at $65.88 a barrel on Friday, according to Reuters. 2
The sector is closely monitoring operations. Airlines have rerouted and canceled some flights across the Middle East amid rising U.S.-Iran tensions. British Airways, which temporarily suspended Bahrain flights earlier this month, said it is keeping the situation under “close review.” A spokesperson confirmed flights resumed on Jan. 24. 3
The broader market showed caution. “We’ve seen a general increase in uncertainty this year,” noted Michael Field, chief European equity strategist at Morningstar, as European shares snapped a five-week winning run and travel stocks took the brunt of the drop. 4
In London, the FTSE 100 edged down 0.07% on Friday, offering scant buffer against stock-specific risks as investors remain cautious. 5
Airline stocks slipped on Friday, with easyJet dropping roughly 3% by the close. Ryanair’s shares followed suit, slipping 2.38% in Dublin. 6
In Madrid, IAG slipped to about 4.83 euros, marking a decline for the session, data from TradingEconomics show. 7
Fuel remains the clear swing factor for IAG. Airlines hedge to shield themselves from oil shocks by locking in prices through contracts, but a sharp, sustained spike can still hurt.
Another risk looms: extended routings and cancellations could drive costs higher and tighten capacity. If the disruption spreads beyond just a handful of routes, it might also spook demand.
Investors are keeping an eye on the calendar. IAG is set to release its FY-2025 results on Feb. 27, the company’s next scheduled update. Traders will focus on any insights into demand, yields, and cost trends heading into 2026. 8
Looking ahead to the week, the immediate signals boil down to a few things: oil prices, Gulf headlines, and whether airlines continue ramping up schedules or begin scaling back. The opening hour on Monday in London should give a clear sense of direction.
