LONDON, Jan 5, 2026, 09:46 GMT — Regular session
- IAG shares rose 0.4% in early London trade, hovering about 2% below a 52-week high.
- Crude prices slipped on ample supply expectations, a tailwind for fuel-sensitive airlines.
- Iberia warned of possible Madrid-Barajas delays on Jan. 7; IAG’s FY-2025 results are due Feb. 27.
Shares of British Airways owner International Consolidated Airlines Group (IAG) (ICAG.L) rose 0.4% to 421.7 pence by 0934 GMT, after trading between 418.4p and 424.3p, market data showed.
The move came as European stocks traded firmer, with the pan-European STOXX 600 up 0.3% by 0810 GMT as investors returned from the New Year break. Defence stocks led gains after U.S. military strikes on Venezuela, while traders kept one eye on central-bank signals for possible rate cuts.
Oil was also in focus for airlines, where jet fuel is a major cost line. Brent crude futures were down 0.8% at $60.26 a barrel at 0752 GMT, while U.S. WTI was 0.9% lower at $56.79, as ample global supply offset geopolitical concerns. “Alternative sourcing is unlikely to strain the market,” said Kazuhiko Fuji, a consulting fellow at Japan’s Research Institute of Economy, Trade and Industry. Reuters
On the operational front, Iberia warned that a ground-handling strike at Madrid-Barajas Airport on Jan. 7 could lead to delays on some flights, adding a near-term uncertainty for the group’s Spanish hub. Iberia said customers travelling to or from Madrid on affected dates may be able to change bookings up to Jan. 15, subject to conditions.
Technically, traders pointed to 420p — the prior close — as a near-term support level, meaning an area where buyers often step back in. On the upside, the shares need to clear the 430.6p 52-week high to signal a fresh leg higher.
Moves in IAG often pull other European airline names into the slipstream, with low-cost carriers such as easyJet and Ryanair typically reacting to the same fuel and demand signals. Network rivals including Lufthansa and Air France-KLM compete more directly with IAG on long-haul routes and premium traffic.
Investors are beginning to position for the next set of numbers, with guidance likely to matter as much as the headline profit. Traders will listen for commentary on 2026 capacity, fares and unit costs, as well as fuel hedging — contracts that lock in prices — which can delay the benefit of cheaper crude.
IAG’s calendar shows FY-2025 results due on Feb. 27, followed by first-quarter numbers on May 8. The group is also scheduled to report second-quarter results on July 31 and third-quarter results on Nov. 6.
But the tailwind from softer oil can fade quickly if Venezuela’s upheaval tightens supply or sentiment turns more risk-averse. Any disruption in Madrid would also risk adding cost and complexity at Iberia during a period when airlines are still rebuilding schedules after the holiday peak.
The next immediate catalyst for traders is the Jan. 7 Madrid-Barajas strike date, followed by IAG’s Feb. 27 results for updates on 2026 demand, costs and shareholder returns.
