London, June 13, 2026, 21:03 (PKT).
- IAG shares jumped 7.07% on Friday, better than the FTSE 100, which added 1.63%.
- Markets rallied after crude oil prices fell, with investors reacting to hopes for a peace deal between the U.S. and Iran.
- IAG’s next big dates include the annual meeting on June 18, the ex-dividend on June 25 and Q2 results set for July 31.
International Consolidated Airlines Group SA, which owns British Airways, Iberia, Aer Lingus and Vueling, finished Friday near the top of UK airline-related stocks. Shares in IAG in London hit 434.30p to sell and 434.50p to buy, gaining 28.80p, or 7.07%. About 38.75 million shares traded hands, based on AJ Bell numbers. The FTSE 100 rose 1.63% that day.
Lower fuel costs matter to airlines, since oil is one of their biggest expenses. When crude drops, airline stocks can get a lift. UK shares broadly climbed Friday after hopes for a U.S.-Iran peace deal drove crude down more than 3%, Reuters reported. The FTSE travel and leisure sub-index, which tracks airlines reliant on oil, surged 3.9%. British Airways owner IAG was among the best performers.
IAG shares bounced back from some of the selling that hit since May, after the group warned on 2026 profit, free cash flow, and capacity, blaming higher jet fuel prices and supply trouble from the Iran war. Reuters said IAG is budgeting roughly €9 billion for jet fuel this year and has hedged 70% of what it expects to need through the end of 2026. Hedging locks in prices or uses contracts to protect against later fuel-price swings.
Chief Executive Luis Gallego said at the time: “We are actively managing the uncertainty created by the fuel price increase and its impact, taking the necessary action on yields, costs and capacity.” “Yields” means the average revenue the airline makes per passenger or seat, an important measure because stronger yields can help counter cost inflation. Reuters
IAG’s bull argument comes from solid earnings buoyed by its premium long-haul, transatlantic business and returns for shareholders. On its investor page, the group targets 2025 revenue of €33.21 billion and operating profit before exceptional items of €5.02 billion. This works out to an operating margin of 15.1%. Margin here is just operating profit as a percent of revenue—what’s left after operating costs. IAG’s plans also include €1.5 billion in excess cash returns for 2025, with €1.0 billion of that for a share buyback.
Friday’s rally has a bear case. It hangs on oil prices and geopolitics more than the companies themselves. IAG has already warned that higher fuel costs will hit 2026 profit and capacity. The shares have bounced sharply and aren’t cheap anymore. AJ Bell figures put IAG on a 7.00 price-to-earnings ratio, with a £19.39 billion market cap and a 2.14% dividend yield. The number looks modest but shows the market is worried. Airline earnings can shift fast on fuel, demand, or airspace changes.
The next key event for investors is IAG’s annual shareholders’ meeting set for June 18 in Madrid. After that, the final dividend is due to go ex-dividend on June 25 and is scheduled to be paid June 29, contingent on shareholder approval. The ex-dividend date is when shares trade without rights to the dividend, which can drive some short-term price moves. The group’s Q2 2026 earnings are up next on July 31. That update should show if lower oil prices are starting to ease the squeeze IAG warned about in May.
IAG looks cheap on earnings and has backing from dividends and buybacks, but is mainly a bet for investors okay with airline-cycle risk. The share price is likely to move with crude prices, what happens in the Middle East, summer travel patterns and what management reports in July about fuel, capacity and cash flow.
