London, April 27, 2026, 18:36 BST
International Consolidated Airlines Group SA, the parent company of British Airways, stuck to its shareholder-return strategy this Monday, announcing it bought 13.76 million shares last week and has now approved a capital reduction that wipes out 115.53 million treasury shares.
Timing’s a factor here. IAG is trimming its share count just as airlines are grappling with a steep fuel price surge—an expense that can squeeze margins fast, even if demand stays solid.
Jet fuel has spiked sharply, Reuters said Monday, with prices jumping from the $85-$90 range per barrel up to between $150 and $200 in the past few weeks. That’s left carriers hiking ticket prices and reworking their forecasts. Fuel often makes up a full quarter of airlines’ operating expenses, so the surge hits both full-service players like IAG and budget operators.
IAG confirmed it repurchased the shares between April 20 and April 24 as part of its €500 million buyback plan unveiled in February. Purchases took place on both the London and Madrid exchanges, with all shares moving to treasury—so these now sit on the company’s own books, not with public holders, while IAG waits for potential cancellation approval at the annual meeting.
A filing revealed that on April 22, the Madrid Commercial Register recorded the deed canceling 115.53 million treasury shares. That move brought IAG’s share capital to €461.17 million, divided across 4.61 billion ordinary shares. As of then, the company still held 131.96 million treasury shares.
After the market closed, IAG shares in London were changing hands at 373.90 pence on the sell side and 374.10 pence to buy, slipping 0.66%, Hargreaves Lansdown data showed. The FTSE 100 dropped 0.56%. IAG finished the prior session at 376.30 pence.
The buyback comes alongside a tougher note for passengers. Last week, IAG announced it plans to hike ticket prices, citing rising jet fuel costs—but added it hasn’t faced any issues with fuel supply. Despite having hedged some of its fuel, the company cautioned it’s “not immune” to broader swings in fuel prices. Reuters
It’s not just IAG feeling the squeeze. EasyJet flagged a larger first-half pre-tax loss, citing an extra £25 million hit from fuel costs in March. Over at Air France-KLM, the group is set to bump up certain long-haul ticket prices by €50 per round trip, while KLM will scrap 160 European flights. Moves like these give IAG some leeway to increase its own fares, but the broader strain in the industry is unmistakable.
IAG came into the fuel shock on firmer footing than plenty of rivals. Back in February, the group posted an operating profit before exceptional items of €5.02 billion for 2025, beating the €4.97 billion LSEG analyst consensus, thanks to softer fuel prices and solid demand across key transatlantic and premium markets. At the same time, management outlined plans to return €1.5 billion to shareholders over the following year, with a €500 million buyback on track to wrap up by the end of May.
“Since Q3 we have seen a rebound,” Chief Executive Luis Gallego said on a media call in February, pointing to stronger demand—premium and corporate bookings at British Airways stood out. Finance chief Nicholas Cadbury, speaking to reporters, flagged “little visibility” for the second and third quarters, which is why the group held back from offering a deeper profit forecast for 2026. Reuters
Here’s the worry: persistent fuel costs, or a hit to demand from leisure travelers balking at higher ticket prices, could leave operating profit exposed— buybacks won’t be much help there. IAG is pressing governments for some leeway, like relaxing airport slot rules that force airlines to use or lose valuable slots, aiming to cushion the ongoing squeeze on costs.
Monday’s filings indicate management is sticking with cash returns for the time being. The question for investors: will a reduced share count do enough to counteract the fuel pinch, and can British Airways, Iberia, Vueling, and Aer Lingus raise fares without ceding too many passengers?
