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The past few weeks have been tough for the airline industry. Ever since the US and Israel struck targets in Iran in late February, jet fuel prices have soared. They currently stand at $185 (£138) per barrel, or more than double pre-conflict levels. Although European airlines are better hedged than North American and Asian peers, there are growing concerns about availability.
Airline shares have, unsurprisingly, taken a beating. International Consolidated Airlines shares have been more robust, falling by just 5 per cent. Its share price has been supported by the recent cancellation of just over 115mn shares (or about 2.5 per cent of the total outstanding), which were repurchased during its recent €1bn (£870mn) buyback programme.
This provided outgoing chief financial and sustainability officer Nicholas Cadbury with the chance to offload part of his holding, selling 225,000 shares at an average price of £3.62 per share. In January, IAG announced Cadbury is set to leave the business to pursue other opportunities. He will be replaced in July by José Antonio Barrionuevo, who has been with the group for 13 years and is currently chief financial and transformation officer at British Airways.
