Shares in airlines came under pressure on Friday as ongoing strength in oil prices raised the prospect of higher fuel prices ahead.
easyJet PLC led the FTSE 100’s fallers come mid-morning, having fallen by 1.8%, while British Airways owner International Consolidated Airlines Group SA (LSE:IAG) slipped 1.1%.
Wizz Air Holdings PLC (AIM:WIZZ) and Ryanair Holdings PLC (LSE:RYA) also fell, despite both reporting an increase in passenger numbers through December earlier in the day.
Declines followed an increase in the price of benchmark Brent crude to a peak of US$76.54 a barrel on Thursday, which equated to a two-month high.
Oil eased back on Friday morning to US$75.57, but remained well above the US$70.97 mark seen in early December.
AJ Bell analyst Russ Mould noted airlines had enjoyed easing cost pressures in 2024 as oil prices receded.
“However, with oil creeping higher in the first knockings of 2025, fuel costs could still return as a meaningful headwind for the industry,” he said.