IAG dropped from JP Morgan's top picks as fuel costs bite into forecasts Proactive uses images sourced from ShutterstockJP Morgan has removed International Consolidated Airlines Group SA (LSE:IAG) from its analyst 'focus list' after a run of outperformance, while cutting earnings forecasts for the British Airways owner on higher fuel costs and reduced capacity. Despite the volatility in the region and a sharp increase in fuel costs, the group still expects to land within its 12% to 15% operating margin range this year. That would make it the most profitable name in JP Morgan's coverage on that measure, and drive significant cash generation. Over the same stretch, the broker's operating profit estimate for the group has fallen roughly 15% below where it started the year. The shares trade on 6.8 times 2027 earnings on JP Morgan's numbers.