Bernstein Sees Fuel Cost Pressures as 'Manageable' for IAG; Estimates Revised

02:31 AM EST, 11/10/2026 (MT Newswires) -- Bernstein believes fuel cost pressures are "manageable" for International Consolidated Airlines Group (IAG.L, IAG.MC), d/b/a IAG, even as rising prices are expected to remain an industry-wide drag. "IAG has suffered through higher fuel prices this year as all airlines have. Yet margins are still targeted at 12%+, demand is strong, and buybacks are still with us. The company has a better ability than most to withstand higher fuel prices, and still return >50% of market cap to investors over the next 5 years, even if fuel remains expensive as implied in current forward curves," analysts said Monday. The research firm noted that "healthy" yields and expanding premium product give IAG "optionality" amid persistently high fuel prices. "Selective capacity reductions support fares," Bernstein wrote. "And in fuel Armageddon, weaker competitors (Virgin Atlantic, Air Europa) are hit much harder, which could lead to rare opportunities." Against this backdrop, analysts lifted their price target to 5.55 pounds sterling from 5.50 pounds and reiterated their outperform rating on the stock, noting the company is a "strong performer, and far too cheap." Bernstein also trimmed its full-year 2026 and 2027 adjusted EPS estimates to 0.58 euro and 0.71 euro, respectively, from 0.59 euro and 0.71 euro. The research firm said the EPS revisions are in line with the price target.