Citi says legacy airline capacity cuts support fares as IAG stands out on valuation

Legacy European airlines are trimming their summer schedules more aggressively as elevated fuel prices broaden the scope of network cuts, though Citi said the adjustments remain small enough to support near-term pricing power. The broker said early summer 2026 growth on legacy carrier networks remains minimal, ranging from a 0.1% decline to a 0.7% increase in the second quarter, accelerating to growth of between 1.6% and 4.7% in the third quarter.