London, April 22, 2026, 14:12 BST
Shares of International Consolidated Airlines Group SA slipped Wednesday, with airline stocks taking a hit from another uptick in crude prices. The British Airways parent again found itself in the crosshairs as investors look ahead to its first-quarter update next month.
IAG dipped 2.1% in London, with easyJet off 1.6% and Wizz Air down 1.3%, as Brent crude climbed past $100 a barrel following reports of gunfire hitting three container ships in the Strait of Hormuz. By late morning, the FTSE 100 barely budged.
Fuel has shifted from just a cost issue to a planning risk for Europe’s airlines. IAG hasn’t reported jet-fuel supply problems at its key airports, but acknowledges its carriers are already dealing with steeper fuel bills.
EU officials are weighing up if member states ought to maintain specific jet-fuel reserves—essentially, dedicated stockpiles—and looking at how to reallocate supplies if there’s a crunch. For now, Brussels says there’s no shortage, but the International Energy Agency cautions that problems could hit as soon as June unless Europe manages to secure at least half of its normal Middle Eastern fuel imports.
The timing isn’t great. IAG will report its first-quarter numbers on May 8—a chance for investors to see if rising fuel prices are already weighing on bookings, ticket prices, or capacity plans.
Analysts are sticking with the stock. On Wednesday, JPMorgan’s Elodie Rall reiterated a Buy rating on IAG. Over at Citi, Conor Dwyer also kept a Buy, though he trimmed his price target to 600 pence from 610 pence—a modest drop in the broker’s future share value estimate.
IAG kicked off the year with a simpler investment pitch than many rivals. In February, the company posted annual profits that topped expectations, citing lower fuel bills and robust demand for premium transatlantic seats. The carrier also announced plans to return 1.5 billion euros to shareholders over the coming year, including a 500 million euro share buyback. “Since Q3 we have seen a rebound,” Chief Executive Luis Gallego said at the time. Reuters
The picture’s turned messier. TUI slashed its profit forecast Wednesday, blaming jitters tied to the Iran conflict and jet-fuel supply issues. European carriers now look set for widespread capacity reductions and fresh profit warnings as Q1 earnings roll out next week.
It’s not only oil prices rattling the market. A protracted fuel crunch could push airlines to cut back on flights, tweak routes, or hike ticket prices—potentially tamping down demand right as Europe heads into the busy summer travel stretch.
Still, things could get worse for IAG if the Hormuz disruption drags on. Actual shortages would force costs higher, leaving the company squeezed—either it trims growth plans or bumps up fares. EU officials maintain that shortages aren’t happening right now, yet their push for contingency measures highlights how fast the issue has escalated.
IAG shares are listed in both London and the main Spanish markets, making the stock sensitive to UK investor moods as well as headlines about travel across Europe. Now, all eyes are on management: can they keep a lid on fuel costs without slowing gains in premium travel?
