IAG shares underperformed the FTSE on light volume, as traders looked to see how well fuel costs could be passed through ahead of Q2 results.
- IAG ended at 477.50p, slipping 0.31%. The FTSE 100 added 0.2% to finish at 10,679.03.
- Trading volume came in at 5.48 million shares—around 28% of the 19.39 million average. It’s a light tape while the stock remains 3.12% under its June 25 high.
- Brent trading close to $72 has taken some pressure off the fuel bill, but IAG still needs to show it can make up around 60% of the extra fuel costs through pricing, lower costs and capacity moves.
IAG (LON:IAG) dipped Friday, losing 1.50p to close at 477.50p. The move came as the FTSE 100 ended higher on the week, but trading in the British Airways parent was quiet. Only a narrow range, 473.80p to 477.50p, printed before the closing auction.
This is the trade to keep an eye on. The stock didn’t drop much on volume—just 5.48 million shares traded, well under the 19.39 million average. It finished 3.12% off its 52-week high of 492.90p from June 25.
| Friday tape | Latest / close | Day move | Volume | Note |
|---|---|---|---|---|
| IAG ended at 477.50p | 477.50p | -0.31% | 5.48 mln | volume was 28% of average |
| IAG after-hours on Google | 474.54p | -0.93% | 5.48 mln | quote at 16:53 BST |
| FTSE 100 | 10,679.03 | +0.2% | — | index booked weekly gain |
| FTSE 250 | — | +0.5% | — | midcaps beat blue chips |
Airline investors are now less worried about getting fuel and more about getting fuel prices back up. Brent crude settled at $72.10 a barrel on Friday. Reuters said oil benchmarks hit their lowest since before the war on Thursday, with U.S.-Iran peace talks still on track. Citi analysts called the process “fragile but continues for now.” Reuters
IAG’s outlook for the second half is still in question. In May, the company reported first-quarter revenue up 1.9% to 7.18 billion euros and operating profit up 77.3% to 351 million euros. It set 2026 fuel cost at about 9.0 billion euros, with 70% of the year hedged. IAG said it aims to recover about 60% of the extra fuel cost by raising revenue and taking cost actions.
Chief Executive Luis Gallego said IAG is “taking the necessary action on yields, costs and capacity” and doesn’t see “issues with fuel availability in our main markets.” The company put booked second-quarter revenue at 80%. Capacity is now expected to go up about 1% in Q2 and 2% in Q3, both under the 3% full-year growth outlook it gave back in February. IAIR Group
| IAG operating markers | Q1 2026 / outlook | Investor read-through |
|---|---|---|
| Revenue | €7.18 bln, +1.9% | Demand stayed solid ahead of full fuel impact |
| Operating profit | €351 mln, +77.3% | Q1 margin got a boost from delayed fuel price effect |
| Q2 booked revenue | 80% | Investors now focus more on pricing than load factor |
| 2026 fuel cost | about €9.0 bln | How much fuel cost gets passed on is critical |
| Fuel recovery target | about 60% | Cost and fare moves need to hit Q2 numbers |
IAG’s under-the-radar strength is its fuel logistics. On the May earnings call, British Airways CEO Sean Doyle said handling its own fuel gives the airline “more control over our supply situation” and is a “big advantage” going into summer. CFO Nicholas Cadbury highlighted a port at the Isle of Grain and direct fuel trains to Heathrow, calling the company’s setup “difficult to replicate.”
Peer stocks traded without much pattern as oil prices slipped. easyJet plc (LON:EZJ) was last up 0.04% at 558.20p, Deutsche Lufthansa AG (ETR:LHA) dropped 0.08% to 9.98 euros, while Air France-KLM SA EPA:AF was down 0.37% at 13.40 euros. IAG’s most recent Google quote showed it sitting 3.7% off its 52-week high—closer to the peak than easyJet or Air France-KLM, but not as near as Lufthansa.
| Airline | Ticker | Latest quote | Day move | P/E | Gap to 52-week high |
|---|---|---|---|---|---|
| IAG | LON:IAG | 474.54p | down 0.93% | 7.99 | 3.7% off high |
| easyJet | LON:EZJ | 558.20p | just up 0.04% | 10.79 | 10.1% from top |
| Lufthansa | ETR:LHA | €9.98 | slipped 0.08% | 7.63 | 1.1% below high |
| Air France-KLM | EPA:AF | €13.40 | dipped 0.37% | 2.52 | 11.6% under peak |
easyJet’s bid saga gave airline stocks a trading marker but didn’t boost IAG. Reuters said easyJet shares dropped almost 7% for the week ahead of Castlelake’s July 5 deadline to make an official move or walk. Barclays’ Andrew Lobbenberg pointed to “broker downgrades and holders taking profits” for the slide, and saw just a “modest reduction” in deal odds. Reuters
IAG will report Q2 2026 results on July 31. Shares remain near the June high. Unit revenue, fuel costs and cash-return comments in the report could move the price more than Friday’s light-volume drop.
