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. (Investing)
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. (Reuters)
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. (Reuters)
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. (Reuters)
In London, the FTSE 100 edged down 0.07% on Friday, offering scant buffer against stock-specific risks as investors remain cautious. (Investing)
Airline stocks slipped on Friday, with easyJet dropping roughly 3% by the close. Ryanair’s shares followed suit, slipping 2.38% in Dublin. (Investing)
In Madrid, IAG slipped to about 4.83 euros, marking a decline for the session, data from TradingEconomics show. (Trading Economics)
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. (Iairgroup)
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.
