Shares of International Consolidated Airlines Group (IAG), the parent company of British Airways, closed Friday's session with a notable 4.3% gain, reaching 438.5 pence. This performance placed the stock near its 52-week high and significantly outpaced the broader FTSE 100 index, which rose 0.6%.
Earnings in Focus
The market's attention is now firmly fixed on the company's upcoming full-year 2025 financial results, scheduled for release on February 27. The report will provide critical insights into the airline's profitability amid a complex operating environment.
Airlines currently navigate a landscape of robust passenger demand and firm ticket pricing, counterbalanced by persistent cost pressures. Industry-wide challenges include supply chain disruptions, delayed aircraft deliveries, and elevated expenses for maintenance and leasing. Global passenger traffic in 2025 reportedly exceeded pre-pandemic 2019 levels by 9.3%, with further growth anticipated this year.
Macroeconomic Headwinds
Fuel costs remain a pivotal variable for airline margins. Brent crude oil settled at $68.05 per barrel on Friday, with geopolitical tensions, particularly involving Iran, contributing to market volatility. Concurrently, the Bank of England's recent signals regarding potential interest rate cuts, contingent on cooling inflation, provided a supportive backdrop for the broader market.
Trading volume for IAG was active, with approximately 14 million shares changing hands during the session. In a separate regulatory filing dated February 6, the company disclosed it holds 162 million treasury shares, with total voting rights standing at 4.57 billion.
Looking ahead, investors will scrutinize the earnings report for IAG's ability to manage these crosscurrents. Key risks include potential spikes in oil prices, renewed airspace disruptions, and further supply-chain complications, all of which could rapidly pressure operating margins.