London, June 17, 2026, 12:06 BST
- IAG’s CDIs trading in London were up roughly 0.6% near 457p late in the morning, with the British Airways parent nearing its 12-month peak.
- IAG bought back 6.1 million shares last week, according to its latest buyback report. Investors are turning to the shareholder meeting in Madrid set for Thursday.
- Oil hovered close to its lowest in three months, with traders watching the impact of a possible U.S.-Iran peace deal. Jet fuel costs stayed front and center for airline players.
IAG shares climbed in London on Wednesday, building on recent gains. Investors shrugged off last month’s fuel warning, focusing on falling oil prices and the company’s buyback activity.
Shares trading in London as CDIs for the Spanish company were at 457.00p to 457.20p, up 2.90p, or 0.64%, late morning, per AJ Bell. The FTSE 100 stood near flat at 10,499.11 as of 11:52 BST.
IAG is in focus as a fuel risk proxy. The owner of British Airways, Iberia, Aer Lingus and Vueling told investors back in May that higher jet fuel was set to hit 2026 profits, but shares have bounced as oil eased. According to MarketWatch data, the stock climbed 2.82% Monday, then gained another 1.27% Tuesday.
IAG said Monday it bought 6,104,208 ordinary shares from June 8 to June 12 as part of its €500 million buyback. The shares are to be held in treasury until shareholders approve cancellation at the annual meeting.
IAG started its buyback on May 18 and plans to wrap it up by Sept. 30 at the latest. The program splits purchases between market investors and Qatar Airways, which is matching sales to keep its voting stake at 25.1434%, IAG said last month. The company holds its AGM in Madrid on Thursday, noon CEST, with a hybrid meeting.
Brent crude hovered close to $79 a barrel on Wednesday, stabilizing after both Brent and U.S. crude slid about 5% on Tuesday. The drop came as traders bet a possible U.S.-Iran deal would make oil shipments in the Gulf easier. “The gradual resumption of oil flows, however slow, will materially affect the oil balance,” PVM Oil analyst Tamas Varga told Reuters. Reuters
IAG flagged fuel as a big wild card. The group told the market in its first-quarter update that it was 70% hedged for the rest of 2026, meaning it has deals to cover part of its future fuel bill. But IAG still penciled in annual fuel costs of about €9 billion, and said profit would land below earlier targets. CEO Luis Gallego said IAG is “actively managing” higher fuel prices and doesn’t see a supply squeeze in its main markets. IAIR Group
Takeover talk has swirled around EasyJet after Castlelake, a U.S. investment firm, said it was weighing a possible bid. Air France-KLM’s Ben Smith called easyJet’s assets “amazing” but told reporters his group isn’t actively pursuing an offer. Reuters in the same piece pointed to Madrid—run by IAG’s Iberia—as one of just two big Iberian Peninsula hubs. Reuters
The risk case is clear. If the U.S.-Iran deal breaks down, oil might move up again and gains for airlines could reverse. IAG has warned that higher fuel will hit profit this year. The rally in the shares, which are pushing back up toward February levels, could struggle if summer bookings come in weak, airspace gets disrupted again or transatlantic fares drop.
IAG’s next financial results are due with its Q2 report on July 31. Market focus is likely to stay on oil, then on buyback activity.
