LONDON, April 25, 2026, 22:03 BST
International Consolidated Airlines Group SA plans to hike ticket prices in response to climbing jet fuel costs, though the British Airways parent said it hasn’t encountered any supply disruptions so far. The company cautioned it was “not immune” to the broader impact from the Iran-war-driven spike in fuel prices. An IAG spokesperson added that the group is urging governments for more leeway on airport slots—crucial takeoff and landing rights airlines must typically use to retain—so carriers can operate more efficiently as expenses mount. Reuters
The fuel pinch has broken out of the oil patch. Brent crude wrapped up Friday at $105.33 a barrel—up roughly 16% over the past week. Reuters, citing shipping data, reported just five vessels cleared the Strait of Hormuz in the last 24 hours, as traffic through the key chokepoint stayed largely stalled.
IAG faces inconvenient timing here. After riding a solid 2026 kickoff, buoyed by transatlantic routes and premium-cabin bookings, the group is set to publish Q1 results on May 8. Now, investors want to see just how much of the extra fuel cost management can push through to ticket prices—before margins take a hit.
Fuel hedges offer airlines a layer of protection, but it’s hardly a complete barrier. Simply put, hedging locks in coverage against swings in fuel prices—helpful for a while, though the buffer fades as older deals expire and updated contracts bring fresh expenses.
IAG isn’t the only carrier facing turbulence. Air France-KLM has raised long-haul fares. EasyJet flagged a deeper half-year loss, citing fuel costs among the culprits. TUI, meanwhile, trimmed its full-year profit guidance, blaming added expenses from the war and ongoing disruptions.
IAG shares slipped, quoted at 377.10p to sell and 377.30p to buy in AJ Bell’s delayed London pricing—down 1.62% Friday. The FTSE 100 also dropped, off 0.75%. AJ Bell pegged IAG’s market cap at roughly 16.91 billion pounds.
London is home to the company’s headquarters, though it’s registered in Spain, and its stable covers British Airways, Iberia, Vueling, Aer Lingus, LEVEL, IAG Loyalty, along with IAG Cargo. Shares list in both London and Spain—so any fuel price jolt has implications across UK travel names and the wider European airline sector.
The group isn’t short on demand just yet. Back in February, Chief Executive Luis Gallego pointed to a rebound since the third quarter—premium and corporate traffic were holding up at British Airways, and first-quarter bookings looked solid, according to Reuters.
Still, there’s the chance that higher ticket prices won’t cover the jump in fuel costs—or they could end up discouraging price-sensitive travelers right at the start of the summer rush. TotalEnergies CEO Patrick Pouyanne, speaking Friday, flagged the risk that if the Strait of Hormuz stays blocked, the world could face an “energy scarcity.” French President Emmanuel Macron, for his part, said efforts are focused on a complete reopening over the coming days and weeks. Reuters
IAG’s task is tight: push fares just high enough to shield profits, but not so much that a fuel shock morphs into lost demand. Eyes are on the first-quarter results next—investors will be looking for numbers, not just soothing words.
