London, June 15, 2026, 10:03 BST.
- IAG was last up roughly 3% at 449p. Shares rose after a strong session on Friday, with the drop in oil prices helping airlines.
- Traders are betting on the chance that a U.S.-Iran deal could reopen the Strait of Hormuz, taking some pressure off fuel costs.
- Next up for the company is IAG’s Q2 2026 update on July 31.
International Consolidated Airlines Group SA gained in London on Monday, with buyers coming into airline stocks after oil prices dropped. The owner of British Airways, Iberia, Vueling, Aer Lingus and LEVEL saw shares at 449.00p, up 2.93%, Google Finance showed shortly after 10 a.m. London time. The price was near the session high and put the group’s market value near £19.94 billion. IAG’s share website was showing a similar price just under 450p. Google IAIR Group
IAG extended Friday’s rally, adding to its 7.07% gain to 436.2p that day and beating the FTSE 100’s 1.63% rise, MarketWatch said. Fuel costs matter to the shares, since they’re one of the biggest expenses for airlines. Reuters reported Brent crude fell almost 5% Monday after a preliminary U.S.-Iran peace deal raised hopes the Strait of Hormuz could reopen, easing shipping. Lower fuel can help airline margins if demand stays strong. MarketWatch Reuters
IAG isn’t bouncing off a weak base. The carrier reported first-quarter 2026 revenue up 1.9% to €7.18 billion, operating profit up 77.3% at €351 million, and after-tax profit up 71% to €301 million. CEO Luis Gallego said demand for the group’s airline brands and networks stayed “continued strong,” but IAG also flagged that rising fuel prices will pull this year’s profit below its earlier expectations. London Stock Exchange PDF
Bulls point to IAG’s transatlantic and premium markets, a better balance sheet, and ongoing payouts to shareholders. First-quarter numbers showed net debt at €4.18 billion, with net leverage at 0.5 times, and liquidity at €12.73 billion. The leverage measure is debt to earnings power. Lower leverage means IAG can take more hits if needed. IAG kept guidance for sending out the last €1 billion of surplus cash by the end of February 2027. London Stock Exchange PDF
Fuel and geopolitics remain key worries for the bear case. IAG said it has 70% hedged for fuel through the rest of the year. Those contracts give some shelter from price volatility, but the company still expects the Middle East conflict to hit harder out to 2026. Conditions across the sector look shaky. IATA cut its global airline net profit estimate for 2026 to $23 billion from a previous $41 billion, pointing to disruption in the Middle East and elevated fuel prices. London Stock Exchange PDF IATA
IAG’s valuation screens cheap on Google Finance, which puts the P/E ratio at 7.5. That’s the price-to-earnings measure that stacks up the share price against per-share earnings. The figure looks low. Google’s analyst snapshot posted an average 12-month price target at 476.93p, up about 6% from where shares trade, with the lowest target at 355p and the highest at 600p. That gap shows markets still argue over IAG’s earnings staying power if costs, outages or demand slide. Google
IAG looks fairly priced at the moment, with some room to run if oil keeps dropping, but after two sessions up it doesn’t stand out as cheap. Investors are waiting to see if the peace deal brings back Gulf crude flows and if Brent holds near these levels. They’ll also be watching if IAG holds onto fares without demand slipping. Q2 2026 numbers are up next on July 31, and the shares trade ex-dividend June 25, according to Google Finance and IAG’s calendar. IAIR Group Google
