LONDON, March 24, 2026, 16:39 GMT
International Consolidated Airlines Group ended Tuesday in London at 358.4 pence, slipping from Monday’s 361.3 pence finish as airline shares came under renewed pressure.
IAG’s in a squeeze: shareholder payouts offer some support for the stock, but oil’s surge throws a wrench into the fuel bill. Europe’s travel and leisure names slipped 0.8% earlier Tuesday after crude pushed back above $100. David Morrison at Trade Nation called it an “unexpected switch” — markets hadn’t factored in the Strait of Hormuz closing. Reuters
Monday’s filing from IAG put a number on the first leg of its buyback: the company snapped up 13.96 million shares between March 16 and March 20 as part of its €500 million repurchase initiative. Those shares aren’t being retired just yet—they’ll sit in treasury until shareholders get their say at the annual meeting.
Shares climbed 4.54% Monday, closing at 361.3 pence, as trading volume hit 23.6 million. Still, that bounce leaves the stock roughly 22% under its Feb. 27 52-week peak of 464 pence.
European airline stocks snapped higher Monday, buoyed by a wider 2.5% jump in the travel and leisure index as oil retreated. Air France-KLM advanced 3.9%, Lufthansa tacked on 3.4%. John Wyn Evans of Rathbones pointed out that lingering conflict remains a drag, though he noted even a hint of a ceasefire could trigger a sharp squeeze to the upside.
IAG’s deal ambitions were in focus after Reuters said Friday the group was expected to drop its pursuit of Portugal’s TAP. Still, no final call yet—there’s a chance IAG might put in a non-binding offer ahead of the April 2 cut-off, though that would only be a tentative pitch. Air France-KLM and Lufthansa are in the mix too.
It’s part of a bigger move to hand more cash back. IAG, when it released its 2025 results in February, reported €5.02 billion in operating profit before exceptional items and announced a €1.5 billion shareholder return, set to roll out over 12 months, kicking off with the current buyback. Chief Executive Luis Gallego told investors, “Since Q3 we have seen a rebound,” pointing to solid momentum in premium and corporate demand at British Airways and a strong start to first-quarter bookings. Reuters
Still, risks haven’t disappeared. Earlier this month, J.P. Morgan said a lasting 10% jump in jet fuel costs could drag operating profit at IAG, Air France-KLM, Lufthansa and Ryanair down anywhere from 3% to 10%. Over at Bank of America, Nathan Gee flagged that airlines serving the most price-sensitive flyers tend to “get squeezed the most in this environment.” Reuters
IAG has a cushion in place for now. Earlier this month, the group said it was well hedged, with a chunk of its fuel costs fixed in advance. No fare hikes on the table yet, but British Airways did move up the end of its winter Abu Dhabi service, citing “continuing uncertainty.” Reuters
