LONDON, June 12, 2026, 09:22 BST
- IAG was changing hands near 430p on the London market. Data from Hargreaves Lansdown showed the shares up 24.60p, or 6.04%. The FTSE 100 was also up.
- European travel and leisure stocks pushed higher, leading gains after Brent crude dropped over 2% on hopes for a U.S.-Iran diplomatic deal.
- Fuel remains the big risk, after IAG warned in May that its 2026 profit outlook is now lower than first expected.
IAG shares jumped in London on Friday, up 6.04% to 432.10p to buy, as the airline group tracked gains in the sector after oil prices dropped. Hargreaves Lansdown put the stock at 431.90p to sell. The owner of British Airways, Iberia, Vueling and Aer Lingus saw renewed interest. The FTSE 100 was also up 1.28%.
The rally came with broad European gains, not just IAG moving up. Reuters said the STOXX 600 was up 1.2% early Friday. Travel and leisure were strongest, adding 3.4% as a group. Lufthansa rose 4.6%, Air France-KLM tacked on 5.7%. Brent crude dropped more than 2% after concerns about U.S. and Iran cooled.
IAG shares have rebounded after a tough patch for airlines, as rising fuel costs and Middle East worries kept investors on edge. The company’s first-quarter update in May showed revenue at €7.18 billion, up 1.9%, with operating profit jumping 77.3% to €351 million. But IAG also flagged that higher fuel prices would be a drag for the rest of the year. Chief Executive Luis Gallego said the group is “actively managing the uncertainty created by the fuel price increase and its impact.” IAIR Group
IAG said about 3% of its capacity had been tied to the Gulf region before the conflict, mostly with British Airways, but much of that flying is now redeployed. The company said it is 70% hedged for the rest of 2026 and sees full-year fuel costs of about €9.0 billion, using the May 5 fuel curve. IAG plans to offset roughly 60% of the higher fuel bill with revenue and cost steps.
Airline stocks got a lift Friday but the sector remains shaky. The International Air Transport Association cut its outlook on June 7, now seeing global airline net profit dropping to $23.0 billion in 2026. That’s about half what it was forecasting before, and well below the $45 billion it sees for 2025. “War-related disruptions in the Middle East and rising fuel costs have shifted the outlook for airlines to the worse,” said IATA Director General Willie Walsh. IATA
Sector news added more caution this week. Reuters said Thursday that Wizz Air didn’t give fiscal 2027 guidance because of Middle East uncertainty and the Strait of Hormuz closure. The airline expects first-quarter revenue per available seat kilometre to fall mid-to-high single digits. Even so, Wizz Air’s annual operating profit beat analyst forecasts, lifting shares 4.3%. Investors are backing carriers that can handle fuel and route problems.
IAG’s next big earnings event comes with its Q2 2026 report on July 31. The stock could stay volatile before then, tracking moves in oil prices and developments over Middle East airspace. Investors will watch for strength in premium and transatlantic bookings and signs IAG can keep sending cash back to shareholders even as fuel bills rise.
