- Ryanair shares surged more than 10pc on 08 April 2026 following the US-Iran ceasefire announcement.
- International Airlines Group shares climbed around 8pc in the same session.
- Oil prices fell sharply as markets anticipated safer passage through the Strait of Hormuz.
- The two-week ceasefire includes conditions for reopening the critical waterway.
- Industry executives note that jet fuel supply recovery could take months despite the deal.
Airline stocks have shown mixed movements in early trading on Thrusday with Ryanair shares rising sharply again after a strong session on 8 April where the ADR has closed at $64.20. The stock has gained over 10pc on that day amid broader market sentiment.
Ryanair shares have held gains after the ADR closed at $64.20 on 8 April. The stock has advanced over 10pc on that day. IAG shares have traded around 387 pence to 392 pence in early London trading after the price closed at 389.40 pence on 8 April.
IAG shares traded around 387 pence to 392 pence in early London trading after a gain of more than 8pc on 8 April when the price has closed at 389.40 pence. Volumes have remained robust for both carriers.
Shares in airlines across Europe and Asia soared on Wednesday as investors welcomed news of a two week ceasefire between the United States and Iran that includes hopes for the safe reopening of the Strait of Hormuz.
The deal triggered a relief rally as oil prices tumbled more than 15pc, falling below $100 per barrel.
Both Ryanair and International Airlines Group (IAG), the owner of Aer Lingus, posted significant gains as investors reacted to easing fuel costs:
Ryanair shares surged between 10pc and 11pc in early trading, marking its most significant gain in five years. Prior to the ceasefire, CEO Michael O’Leary had warned that 25pc of the airline’s fuel supply was at risk if the conflict persisted into summer.
IAG shares climbed 8pc as the market welcomed reduced geopolitical tension. IAG had previously reported record 2025 operating profits but saw its stock pull back from a peak of £4.63 in late February due to the initial outbreak of conflict.
Budget carriers led the broader European rally, while Asian indices saw equally pronounced moves. Wizz Air jumped 14pc, while easyJet rose 11pc. Air France-KLM jumped roughly 14pc, and Lufthansa gained between 8pc and 12pc. Qantas advanced over 9pc, while IndiGo surged 10pc. Cathay Pacific rose around 5pc and IndiGo surged 10pc. Chinese carriers including Air China and China Southern added around 6pc each with broader indices such as the Nikkei and KOSPI climbed between 4pc and 6pc.
While crude prices dropped immediately, IATA warned that restoring full jet fuel supply chains through the Strait of Hormuz could still take months. European carriers like Ryanair and IAG remain better protected by fuel hedges than unhedged U.S. rivals, though the latter may benefit more quickly from the sudden drop in spot prices. Analysts caution that the ceasefire lasts only two weeks; any failure in longer-term peace negotiations could quickly reverse these market gains.
Overall, European shares climbed more than 3pc in early trading with budget airlines leading the gains. climbing between four and six percent.
The ceasefire which is conditional on the complete immediate and safe opening of the vital shipping lane through which roughly one fifth of global oil passes offers a potential respite from the disruptions that began when the conflict intensified in late February. Jet fuel prices had doubled in some cases amid blocked tanker traffic and soaring insurance costs forcing airlines to reroute flights cut capacity and absorb higher expenses. Industry observers note that while the temporary truce brings immediate market optimism restoring full refining and supply chains could still take weeks or months meaning ticket prices and margins may remain under pressure in the short term.
Analysts described the moves as a classic relief rally with risk sensitive sectors such as travel and consumer discretionary benefiting from reduced geopolitical tensions. United States stock futures also pointed higher with the S&P500 contracts up more than two percent ahead of the open. However caution remains as the truce lasts only two weeks and any breakdown in negotiations could quickly reverse the gains. Markets will now watch closely for signs of actual tanker movements through the Strait of Hormuz and updates on longer term peace efforts.
The ceasefire announced included conditions for the immediate reopening of the Strait of Hormuz which handles about 20pc of global oil flows. Ryanair and IAG both benefit from lower fuel costs as jet fuel prices ease though industry leaders warn that full recovery of supplies could take months due to damage to refining capacity in the Middle East. European carriers including Ryanair and IAG continue to monitor the fragile agreement which lasts only until late April.
Questions remain over the long-term reopening of the Strait of Hormuz as some reports indicate continued disruptions and accusations of violations linked to actions in Lebanon. The International Air Transport Association confirms that jet fuel replenishment will lag even if shipping resumes while airlines assess the impact on summer schedules. Markets price in cautious optimism but sustained peace talks will determine whether the gains hold.
Airline stocks have surged but tourism recovery wil take more time. Jet fuel prices normally move in tandem with oil prices but they have more than doubled since the Iran conflict far outpacing a 50pc rise in crude prices prior to the two week ceasefire. That has inflated costs disrupted schedules prompted airlines to cut routes and pushed the limits of what travellers will pay. On Wednesday Delta said it expects to pay about $4.30 a gallon for jet fuel in the June quarter adding more than $2bn to the price a year earlier.
Even so global airline and travel stocks have risen. In Europe travel operator TUI was up more than 12pc Wizz Air gained 10pc Air France KLM climbed around 14pc and Lufthansa was up 11pc by 11.30 GMT outperforming gains in European equity indexes. Aer Lingus owner IAG was up 8.6pc while Dublin listed Ryanair saw its stock rallying 11.4pc. Australia Qantas Airways jumped more than 9pc Air New Zealand rose over 4pc Hong Kong Cathay Pacific climbed 5pc and India IndiGo rose 8pc.
While jet fuel supply disruption remains a risk the ceasefire has provided a buying opportunity for quality airlines analysts at Panmure Liberum said in a note. Airlines across Asia have cut flights carried extra fuel from home airports and added refuelling stops as the Middle East conflict has squeezed jet fuel supply. Many airlines in Asia have trimmed services and raised fares to cope with the situation.
