The IAG share price has crawled back in the past few days as investors anticipate more demand for the company’s services. The stock has risen to 135p, which is the highest it has been since May 5th this year. This year, it has jumped by more than 20% from its lowest level. Other airline stocks like EasyJet and Delta have all bounced back.
IAG Group is the parent company of well-known brands like British Airways, Vueling, Aer Lingus, and Iberia. The company also operates IAG Cargo, IAG Loyalty, and IAG GBS. It has a market cap of over 6.6 billion pounds, making it one of the biggest couriers in Europe. Like other aviation companies, IAG is seeing robust growth as leisure and business travel rebounds.
IAG published its quarterly results recently. In them, the company said its total passenger revenue jumped to over 2.655 billion pounds, which was higher than the previous year’s increase of 459 million pounds. At the same time, as the cost of doing business jumped, the company had an operating loss of over 731 million pounds. It also increased its total debt to over 19.7 billion pounds and unveiled a plan to buy 25 planes from Boeing.
IAG seems like a good stock, considering it is trading at a discount compared to other airlines like United and Delta. Further. I expect that business travel will bounce back. This is notable considering that British Airways is a major player in business travel.
IAG share price forecast
The four-hour chart shows that the IAG stock price has been in a strong bullish trend. This recovery started when the stock formed a hammer pattern on May 19th. It has managed to move above the important resistance level at 130p, which was the lowest point on April 11th.
A closer look shows that the 25-day and 50-day moving averages are close to forming a bullish crossover pattern. Therefore, the IAG share price outlook is bullish, with the next key resistance level being at 145p. The stop-loss for this trade is at 130p.