London, May 19, 2026, 13:08 (BST)
International Consolidated Airlines Group stock hovered near flat in midday trading in London Tuesday, sitting at 385.5 pence at 12:53 BST. Investors are looking at a new €500 million buyback while fuel costs remain a worry for the British Airways parent. Trading volume hit 5.61 million shares by that time.
IAG’s new buyback started May 18 and is set to go through Sept. 30. The buyback plan covers up to 300 million shares, or 6.5% of the company’s issued share capital. Some of the shares will come from the open market, while some will come from Qatar Airways, letting Qatar keep its 25.1434% voting stake.
IAG wrapped up a €500 million buyback right after, making its last purchase on May 14. The airline bought 116.8 million shares, around 2.53% of its issued share capital. The shares are now held in treasury, with cancellation depending on shareholder approval for the capital reduction.
IAG shares were up 2.86% to £3.85 on Monday, beating the FTSE 100’s 1.26% gain, but still trading below the February peak of £4.64. The market didn’t push the move much on Tuesday, with the stock having already drawn buyers.
London shares traded higher as softer UK jobs data cooled some rate hike fears. The FTSE 100 gained 0.61%, with the FTSE 250 up 0.81% late Tuesday morning, Reuters reported.
IAG’s Q1 showed some positives for investors, with revenue up 1.9% at €7.18 billion and operating profit climbing 77.3% to €351 million. But fuel remains an issue. The group hedged 70% of its remaining 2026 fuel, but expects fuel costs to reach about €9.0 billion this year. CEO Luis Gallego said, “It’s more about the price of fuel than availability.” London Stock Exchange
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said after the results that IAG did better than expected in the first quarter. He pointed to British Airways’ slots at busy London airports as a reason for the group’s pricing power. But Chiekrie flagged concerns over fuel prices and the wider economy, saying those will affect sentiment in the near term. “The picture could remain difficult for some time,” he said. HL
Some analysts were more positive. J.P. Morgan’s Harry Gowers said the conflict points to “strong free cash flow generation to remain intact,” Reuters reported. That call came even as IAG lowered its forecast for profit, free cash flow and capacity. Reuters
Fuel cost questions didn’t go away as Ryanair reported profit after tax up 40% to €2.26 billion for the year ending in March. The airline flagged that spot jet fuel moved over $150 a barrel, and said it was too soon to give a clear profit outlook for fiscal 2027. CEO Michael O’Leary said demand is still “robust,” but noted bookings are happening closer to departure dates compared with last year. Ryanair Corporate
IAG flagged a balance-sheet update in its tape. The company said it expected to settle its repurchase of €821.7 million in 1.125% senior unsecured convertible bonds due 2028 by around May 19. The final repurchase price was set at €145,685.11 for each €100,000 of principal. IAG also said it plans to redeem what little remains outstanding.
Still, the risk remains. High fuel prices, tighter supply, or pushback on fares could all mean the buyback won’t make up for softer earnings outlooks. Reuters said last week some European carriers found new fuel sources but are paying more, with visibility getting worse after mid-July for some in the sector.
