London, June 29, 2026, 10:01 BST
- International Consolidated Airlines Group SA (LON:IAG) dropped 1.96% to 473.25 pence in late London trading at 0946 BST. The stock is now trading around 4% off the 52-week high reached on June 25.
- The shares trailed the FTSE 100 (INDEXFTSE:UKX). easyJet PLC (LON:EZJ) and Wizz Air Holdings PLC (LON:WIZZ) each dropped close to 2%.
- IAG will start paying its final dividend of €0.05 per share from Monday, with the stock having gone ex-dividend on June 25.
- Heathrow cost risk returns: IAG reported a 4.5% rise in Q1 landing fees and en-route charges, outpacing revenue growth at 1.9%.
International Consolidated Airlines Group SA (LON:IAG) shares dropped Monday. But for investors, fuel wasn’t the only concern. The British Airways parent is trading close to its old highs, as a new dispute about who pays for Heathrow’s expansion brings attention to a costly item the company can’t hedge.
IAG was last at 473.25 pence, off 9.45 pence, as of 0946 BST. Volume was 2.24 million shares. The stock is trading 3.99% under its 52-week high of 492.90 pence from June 25, but it’s still up 39.5% for the year, per delayed market data.
It wasn’t just one stock. EasyJet PLC (LON:EZJ) shed 1.99% to around 571 pence and Wizz Air Holdings PLC (LON:WIZZ) dropped 2.32% to roughly 1,199 pence. The FTSE 100 (INDEXFTSE:UKX) held near flat at 10,511.44.
| London quote, delayed | Price | Day change | Previous close | Note |
|---|---|---|---|---|
| IAG (LON:IAG) | 473.25p | -1.96% | 482.70p | 4.0% off 52-week high |
| easyJet (LON:EZJ) | 570.80p/571.60p sell/buy | -1.99% | 583.00p | Bid noise still lingers |
| Wizz Air (LON:WIZZ) | 1,198p/1,200p sell/buy | -2.32% | 1,227.00p | Higher-volatility peer, smaller size |
| FTSE 100 (INDEXFTSE:UKX) | 10,511.44 | +0.03% | — | UK blue chips steady |
Airport and airspace costs were a key line item for IAG in Q1, with landing fees and en-route charges up 4.5% at €579 million. Total revenue rose 1.9% to €7.18 billion. Capacity barely moved, up just 0.2%. Fuel and emissions costs increased 1.2% for the quarter, ahead of a bigger hit from Middle East fuel expected later in the year.
Heathrow is back as a real cost for airlines. Star Alliance CEO Theo Panagiotoulias told the Financial Times the airport’s £33 billion expansion could end up costing airlines like a “luxury Mercedes”. IAG doesn’t belong to Star Alliance, but British Airways is based at Heathrow, so the issue hits IAG’s long-haul margins. Financial Times
IAG depends a lot on its North Atlantic and Latin America-Caribbean routes. Those two regions made up 50.5% of the company’s first-quarter available seat kilometres. Hargreaves Lansdown’s Aarin Chiekrie said British Airways alone brings in around half the group’s operating profit.
| IAG Q1 2026 line item | Amount/change | Why investors care |
|---|---|---|
| Revenue | €7.18 bln, +1.9% | Revenue kept climbing |
| Operating profit | €351 mln, +77.3% | Profit rose, fuel drag still to come |
| Capacity | +0.2% | Growth nearly flat |
| Landing fees/en-route charges | €579 mln, +4.5% | Fees are rising ahead of sales |
| Fuel costs and emissions | €1.74 bln, +1.2% | Bigger hit likely in 2026 |
| Net debt | €4.18 bln | Dropped from €5.95 bln |
Chief Executive Luis Gallego said in May that IAG was “actively managing the uncertainty” in fuel and that higher prices would likely mean “lower profit this year than we originally anticipated.” IAG said it is 70% hedged for the rest of 2026, with expected fuel costs near €9.0 billion, and that it expects to make up about 60% of those higher costs from revenue and cost measures. IAIR Group
Oil prices have pulled back. Brent crude traded at about $72.20 a barrel on Monday, Reuters said, after the U.S. and Iran reached a deal to stop hostilities. Crude is off 22% for the month. Jet fuel prices also dropped, with the IATA jet fuel monitor showing a 2.1% decline last week to $116.63 a barrel.
The dividend is one factor here but doesn’t fully account for the drop seen Monday. IAG’s final cash dividend comes in at €0.05 per share, with a June 25 ex-dividend date, June 26 as record date, and payout due June 29. IAG finished a €500 million buyback in May after purchasing 116.8 million shares — about 2.53% of its issued share capital.
Chiekrie called fuel IAG’s “single biggest expense” and said near-term sentiment would probably depend on where fuel prices and the broader macro environment go. IAG’s next update is set for July 31, when it reports Q2. HL
