Business 28 February 2026 - 4 March 2026

British Airways parent IAG dropped another 5.4% Tuesday, deepening its recent slide as airline stocks took another hit from spiking fuel costs and a fourth day of turbulence in the Middle East. “If higher energy prices squeeze real incomes and prevent the Bank from cutting rates, hopes would be dashed,” warned David Rees, head of global economics at Schroders, while UK assets continued to come under pressure. The timing is critical: Gulf hubs are a key link between Europe and Asia, and with them offline, airlines have been forced to scrap flights or plot out longer, fuel-hungry routes. On Monday, Reuters calculations tallied $22.6 billion wiped from the market caps of 29 major airlines, hotel, and travel stocks spanning Europe,

IAG shares were down 3.4% at 386.8 pence by 0835 GMT on Tuesday, extending a sharp pullback in the airline group’s stock. The shares closed at 400.5 pence on Monday. The move comes as airlines and investors try to price the knock-on effects of the U.S. and Israeli war against Iran, including disrupted routes and higher fuel bills. Qantas CEO Vanessa Hudson said the carrier had “pretty good” fuel hedging — contracts that lock in prices — but called the oil spike “significant” for aviation.