The IAG share price continues its freefall, hitting a third consecutive day of steep losses. This decline comes on the back of a proposed 50% increase in airport charges at Heathrow airport.
Passenger charges could increase to between £24.50 and £34.40 in 2022, which the airlines fear could stifle the recovery in passenger traffic following the worst of the pandemic.
British Airways, part of the IAG Group, uses the airport for many of its routes. The IAG share price sold off steeply on Wednesday, falling more than 5% for the third day in a row.
IAG Share Price Outlook
The rejection at the 200-day moving average set up the breakdown of the neckline of the head and shoulders pattern at 177.46. This move marks the pattern’s completion, which has led to a measured move that is just short of its potential completion at 156.40. A continued decline of the IAG share price targets 149.72, with 143.94 lining up as a potential downside target.
On the flip side, a bounce on 156.40 sets up a retracement rally towards 167.54, with the former neckline serving as an additional upside target. This rally may be an opportunity for rally-selling if the sentiment on the stock remains negative.