London, April 27, 2026, 18:36 BST
British Airways owner International Consolidated Airlines Group SA pressed ahead with its shareholder-return plan on Monday, disclosing the purchase of 13.76 million shares last week and confirming a capital reduction that cancels 115.53 million treasury shares.
The timing matters. IAG is shrinking its share base while airlines are dealing with a sharp rise in fuel costs, the kind of expense jump that can quickly eat into margins even when demand holds up.
Reuters reported Monday that jet fuel prices had climbed from about $85-$90 a barrel to $150-$200 in recent weeks, forcing airlines to raise fares and revisit forecasts. Fuel can account for as much as a quarter of an airline’s operating costs, making the shock material for full-service groups such as IAG as well as lower-cost rivals.
IAG said it bought the shares between April 20 and April 24 under the €500 million buyback programme announced in February. The shares were bought on London and Madrid trading venues and will be held in treasury, meaning they are shares the company owns itself rather than shares held by public investors, pending possible cancellation approval at the annual meeting.
A separate filing showed the deed for the cancellation of 115.53 million treasury shares was registered with the Madrid Commercial Register on April 22. After that reduction, IAG’s share capital stood at €461.17 million, split into 4.61 billion ordinary shares, while the company held 131.96 million treasury shares.
IAG’s London-listed shares were quoted after the market close at 373.90 pence to sell and 374.10 pence to buy, down 0.66%, according to Hargreaves Lansdown data. The FTSE 100 was also lower, down 0.56%, and IAG’s previous close was 376.30 pence.
The buyback sits beside a more awkward message to passengers. IAG said last week it would raise ticket prices to reflect higher jet fuel costs, while saying it was not seeing interruptions to fuel supply. The company said that despite fuel hedges — contracts that lock in fuel prices in advance — it was “not immune” to wider fuel-price volatility. Reuters
The pressure is not only on IAG. EasyJet has warned of a bigger half-year pre-tax loss, including £25 million of extra fuel costs in March, while Air France-KLM plans to lift some long-haul fares by €50 per round trip and KLM has said it would cancel 160 European flights. That gives IAG some cover to raise fares, but also shows the stress moving across the sector.
IAG entered the fuel shock from a stronger base than many carriers. In February, it reported operating profit before exceptional items of €5.02 billion for 2025, ahead of an LSEG analyst forecast of €4.97 billion, helped by lower fuel costs and demand on core transatlantic and premium routes. It also said then it planned to return €1.5 billion to shareholders over 12 months, starting with the €500 million buyback due to be completed by the end of May.
Chief Executive Luis Gallego told a media call in February, “Since Q3 we have seen a rebound,” referring to demand, with premium and corporate bookings performing particularly well at British Airways. Finance chief Nicholas Cadbury also told reporters there was “little visibility” for the second and third quarters, a reason the group did not give a more detailed 2026 profit outlook. Reuters
The risk is plain enough. If fuel stays high, or if higher fares weaken demand from price-sensitive leisure travellers, the buyback will not protect operating profit. IAG has asked governments for flexibility including airport slot alleviation, or relief from rules requiring airlines to use scarce airport slots or risk losing them, to help manage sustained cost pressure.
For now, Monday’s filings show management has not paused cash returns. Investors will judge whether a lower share count can help offset the fuel squeeze, and whether British Airways, Iberia, Vueling and Aer Lingus can push through price increases without giving up too much traffic.
