London, June 23, 2026, 13:08 BST
International Consolidated Airlines Group dropped 0.6% to 463.1 pence in late London trade Tuesday. The British Airways parent gave back some ground after jumping 2.4% on Monday, when the shares hit a new 52-week high.
IAG shares climbed earlier after Deutsche Bank analyst Jaime Rowbotham raised his price target to 540 pence from 460 pence and kept a “buy” rating. Rowbotham said IAG’s old fuel forecasts were made “at the height of the Middle East conflict” and now sees a 2026 fuel bill of €8.56 billion, less than the management estimate of about €9 billion. Deutsche also upped its targets for Air France-KLM and Lufthansa, but stayed at “hold” on both stocks. Asktraders
Fuel is the main mover right now. Brent crude dropped another 0.6% to $77.47 a barrel on Tuesday, after falling over 3% Monday. Tanker traffic picked up again in the Strait of Hormuz as U.S. and Iran wrapped up peace talks. SEB Research analyst Ole Hvalbye warned the deal is still “new and fragile.” Reuters
Shares fell Tuesday, mostly in line with a softer London session and not because of new worries about the airline. The FTSE 100 slipped 0.7% in early trading as markets raised bets on more interest-rate hikes and responded to news that Britain’s services sector shrank further.
easyJet is back in focus after Castlelake put forward a £4.74 billion bid, which the carrier dismissed as an opportunistic move. Analyst Dudley Shanley at Goodbody said “increased pressure on the board this week” is likely. IAG and Air France-KLM have been seen as possible consolidators in the sector, but EU competition and ownership restrictions make a buyout of easyJet tough. Reuters
IAG said in May that profit, free cash flow, and capacity for 2026 would come in below earlier forecasts. The company blamed higher fuel prices after the Iran conflict. About 70% of IAG’s remaining fuel is hedged, so it has locked in part of its costs. But IAG still expects its yearly fuel bill to be about €2 billion higher from 2025. Chief Executive Luis Gallego said, “We are taking action on yields, costs and capacity.” Reuters
Lower spot oil prices won’t take away the risk right away. Many existing hedges mean the benefits will take time to show, and another Gulf shipping hit could push prices back up. Gallego said IAG will “need to increase fares in order to mitigate the impact of fuel,” though price hikes are tougher on crowded short-haul routes in Europe. Business Travel News
IAG’s next checkpoint comes with its Q2 report out July 31. Investors want to see its new fuel cost guidance, signs that premium and transatlantic demand are still solid, and updates on the capacity cuts it laid out in May.
