- IAG share price is up by about 4% in 2026 and rising oil prices pose an existential threat
- Operations at Heathrow are currently in the mind of investors, with £33 billion expansion plans in the line
- Corporate travel has cooled down recently but the 2026 FIFA World Cup in North America could revamp the segment
IAG share price (LSE: IAG) has carried its 2024 and 2025 momentum into 2026, but has recently been bumping into rougher air. The stock is up by 4% year-to-date, but has dipped by more than 3% across the last five trading days, sparking quiet doubts. Many are convinced that the post-pandemic travel rush is cooling down and may not fuel gains like before.
However, a stumble doesn’t mean collapse, just that skies aren’t perfectly clear anymore. But why is a company that has shown clear signs of operational improvement suddenly losing ground?
Why the Stock Has Struggled Recently
The decline in IAG share price likely reflect traders cashing out following January’s rise, while eyes stay fixed on the upcoming financial report due late next month. Fuel expenses have climbed, adding strain, meanwhile lukewarm interest in high-end seats across the Atlantic hasn’t helped, analysts at Jefferies pointed out, with details echoed later by Yahoo Finance.
A drop lasting five days shows worry about actual problems, mainly how much airports cost to run and keep planes flying. According to The Financial Times, IAG’s main airline, British Airways, faces pushback on the £33 billion plan to grow Heathrow, a move that could raise fees at terminals.
Why IAG Share Price Is Rising
Still, IAG holds steady thanks to solid interest in long-distance flights along with tight control over spending, keeping cash flow stable. Debt levels have dropped sharply compared to post-pandemic times, which bolsters the company’s financial footing.
Still, weaker demand for business travel plus rising competition on shorter routes are making things harder. Coming profit reports will draw attention, especially around how much flying they plan and what they expect for yearly profits.
Right now, figures from Interactive Investor show IAG’s loyalty rewards unit, Avios, ranks third in profits. Ticket income swings up and down, yet earnings tied to loyalty stay steady with strong margins. Even as analysts point to stalled pricing across European flights, IAG leans on extra sources. Avios points shield it differently than airlines such as Lufthansa can manage.
World Cup Boosts 2026 Outlook
Next up, 2026 gains strength from a significant driver, the FIFA World Cup coming to North America. Because IAG controls much of the travel across the Atlantic, it stands ready as demand climbs. This time around, corporate travel may rise alongside holiday flights, according to Evercore ISI analysts. That shift could carry IAG shares close to their usual forecast level near 480p.
Still, expectations might run too far ahead should jet fuel stay pricey or economies cool down across major regions. What happens next hinges on how tightly the company handles seat supply alongside spending. Success here could keep the 2025 gains alive.
IAG Share Price Prediction
IAG share price RSI has stepped down sharply, now sitting at a balanced 50. The pivot is at 430p, while the first support is sitting at the 423.34p, matching up neatly with the 50-day Simple Moving Average. The second support at 417.68p stands out as a stronger floor if pressure builds further. Conversely, pushing past 438.50p again could spark fresh upward drive. Should prices stay firm beyond that mark, eyes may turn toward 446.17p as the next target.
IAG share price with key levels of resistance and support on February 24, 2026. Created on TradingView
Fear of higher expenses at Heathrow creeps into investor thinking just before the February 27 results drop. Heavy spending on planes looms large, cooling near-term excitement even as some take gains off the table.
Not tied closely to fuel costs or vacation patterns, IAG’s customer rewards program brings in reliable income with strong profits. Unlike most carriers, the airline leans on this lean-cost operation to cushion tougher periods.
Fuel costs could pinch profits more than most expect, especially should the economy cool off. Brighter earnings are still on track, yet rosy forecasts might ignore how stubbornly high energy bills eat into margins.