LONDON, June 6, 2026, 20:07 BST
- IAG ended Friday at 420.8 pence, slipping 0.12% for the session and about 2.2% lower than last Friday’s finish.
- IAG raised its profit goal for IAG Loyalty this week, aiming higher for its Avios and holidays businesses as airline CEOs gathered in Rio to talk about fuel prices and fares.
- IAG investors are in for a calm week on the markets ahead of the airline group’s next update, with second-quarter results due July 31.
International Consolidated Airlines Group finished the week in the red. Investors weighed the company’s new €1 billion profit goal for its Avios loyalty arm against concerns over higher jet fuel costs, which stayed in focus at the IATA industry summit.
London trading paused for the weekend, so the last move was Friday’s close. IAG — the holding group for British Airways, Iberia, Vueling, and Aer Lingus — ended Friday at 420.8 pence, slipping 0.12% for the session. Shares dropped about 2.2% for the week, from 430.1 pence last Friday.
Cost control has replaced post-pandemic demand as the main focus for the stock in the near term. Airline executives kicked off the International Air Transport Association’s annual meeting in Rio de Janeiro on Saturday, June 6-8, putting fuel costs, fare hikes, and aircraft shortages at the top of their list. IATA had forecast a record $41 billion net profit for the sector this year, but the Iran war pushed fuel prices higher and disrupted airspace, Reuters said.
Plenty of IAG news this week. The company held its IAG Loyalty investor day, saying the event outlined the “strategic role” of the unit, which manages Avios. IAG said IAG Loyalty now accounts for about 12% of the group’s operating profit. In a post, IAG said it’s aiming for €1 billion in profit from the division, up from €245 million in 2019 and €593 million expected in 2025, and pointed to its capital-light model—meaning it requires less spending on hard assets than airline operations. LinkedIn
IAG Loyalty boss Adam Daniels said the company wants to turn IAG Loyalty into a €1bn operating profit business. Daniels said the group has grown ways to earn and spend Avios, added new partnerships, and brought British Airways Holidays into the loyalty unit. IAG said Avios now counts 46 million members and has over 125 partners, including airlines and companies outside aviation.
IAG shares couldn’t break higher. The stock fell 2.51% on Monday, clawed back some ground in the middle of the week, then finished flat on Thursday and Friday, according to historical trading data.
IAG is cleaning up its balance sheet. The company said Friday it will redeem all remaining 1.125% senior unsecured convertible bonds due 2028 on July 21. These are bonds that holders can convert into shares. According to the notice, only €3.3 million of the bonds are still out after IAG bought and redeemed €821.7 million, or about 99.6% of the original amount.
Fuel is where the focus is. IAG said in May that first-quarter revenue rose 1.9% to €7.18 billion and operating profit jumped 77.3% to €351 million. But the company cut its full-year profit outlook, blaming higher fuel prices. Chief Executive Luis Gallego said IAG was “actively managing the uncertainty created by the fuel price increase,” and looking at yields, costs and capacity to try and limit the impact. Londonstockexchange
IAG said it was 70% hedged for the rest of the year. Fuel hedging lets the group lock in prices early. IAG said its 2026 fuel bill, factoring in the May 5 fuel curve, hedges, and sustainability costs, should come to about €9.0 billion. The group expects to recover roughly 60% of the extra fuel cost with revenue and cost moves.
EasyJet is facing increasing competition. The company said this week a potential offer from U.S. investment firm Castlelake was “highly opportunistic” after its shares dropped due to the Middle East conflict, high fuel prices and weaker confidence. Barclays analyst Andrew Lobbenberg told Reuters easyJet’s shares have long traded below what the airline’s assets are worth. He also said any bid would need to factor in ownership and control rules. Reuters has previously reported that investors have worried about competition problems if major groups like IAG or Air France-KLM tried to buy easyJet. Reuters
But the risk is clear: if fuel prices stay up and airlines push fares too high, demand could fall just as summer peaks. Air New Zealand CEO Nikhil Ravishankar told Reuters at the Rio summit that fare hikes have limits. “The market will respond and demand will soften and then you fly less.” For IAG, there’s risk of being squeezed between higher fuel bills and not being able to pass those on, especially where rivals are strong. Reuters
IATA’s meeting is up next this week, and the market is watching for any shift in profit views for the sector and signs of relief in oil or jet fuel prices. IAG’s next earnings aren’t due until July 31, so shares may move mainly on fuel trends, fares and headlines from peers before then.
