LONDON, March 24, 2026, 16:39 GMT
International Consolidated Airlines Group closed at 358.4 pence in London on Tuesday, down from a previous close of 361.3 pence as pressure returned to airline stocks. 1
The move matters because IAG is caught between two forces right now: cash returns that can underpin the shares, and a renewed oil shock that threatens fuel costs. Europe’s travel and leisure sector fell 0.8% earlier on Tuesday as crude rebounded above $100, and David Morrison at Trade Nation said markets were adjusting to an “unexpected switch” after failing to price in a closure of the Strait of Hormuz. 2
A company filing on Monday highlighted the first part of that equation. IAG said it bought 13.96 million shares from March 16 to March 20 under its €500 million buyback, a plan to repurchase its own stock, and said the shares would be kept in treasury — rather than cancelled immediately — pending approval at its annual meeting. 3
The stock had jumped 4.54% on Monday to 361.3 pence, with 23.6 million shares changing hands. Even after that rebound, it was still about 22% below its Feb. 27 52-week high of 464 pence. 4
Monday’s bounce was part of a broader relief move across European airlines. The region’s travel and leisure index rose 2.5% as oil eased, while Air France-KLM climbed 3.9% and Lufthansa gained 3.4%; John Wyn Evans at Rathbones said unresolved conflict keeps a slow drag on markets, but even a credible ceasefire signal could still spark a sharp squeeze higher. 5
Investors were also weighing IAG’s appetite for deals. Reuters reported on Friday that the group was likely to abandon its interest in Portugal’s TAP, though no final decision had been made and IAG could still submit a non-binding offer — an early proposal that does not commit it to a deal — before the April 2 deadline. Air France-KLM and Lufthansa have also shown interest. 6
That fits a wider push to return cash. When IAG reported 2025 results in February, it posted operating profit before exceptional items of €5.02 billion and set out a €1.5 billion shareholder return over 12 months, starting with the current buyback; Chief Executive Luis Gallego said then, “Since Q3 we have seen a rebound,” adding that premium and corporate demand at British Airways was performing particularly well and first-quarter bookings were strong. 7
But the risks are still on the tape. J.P. Morgan estimated this month that a sustained 10% rise in jet fuel prices could cut operating profit by 3% to 10% for IAG, Air France-KLM, Lufthansa and Ryanair, while Bank of America’s Nathan Gee said airlines carrying the most price-sensitive travellers are usually “the ones that get squeezed the most in this environment.” 8
IAG has some short-term cover. The group said earlier this month it was well hedged — meaning part of its fuel bill is locked in ahead of time — and had no immediate plans to raise fares, though British Airways brought forward the end of its winter flights to Abu Dhabi because of “continuing uncertainty.” 9
