IAG Share Price Breaks Key Resistance as Traders Bet on Strong Earnings

The IAG share price is nearing its all-time high, continuing an uptrend that started in April when it was trading near 206p. The stock has now surged by over 107%, making it a top gainer in the FTSE 100 Index this year.

The rally is accelerating this week as traders positioned ahead of the group’s third-quarter earnings due Friday. The parent company of British Airways, Iberia, and Aer Lingus has benefited from strong post-summer travel demand, rising ticket yields, and improving profit margins across its transatlantic network.

With the stock now above 416p, momentum remains firmly on the side of the bulls, as optimism builds that IAG’s upcoming numbers will mirror the strength seen in its European airline peers.

European Airline Earnings Boost IAG Share Price Outlook

The impact of the recent performance of Ryanair, Lufthansa, and KLM has raised hope among the European airline industry and contributed to the improvement of the sentiment of the IAG shares before its upcoming earnings report.

Ryanair enjoyed second-quarter revenue growth of 8% to €5.48 billion and an increase of 20 percent in profit after tax to €1.72 billion. The number of passengers increased to 61.2 million and its load factor also improved to 96%.

Lufthansa’s nine-month revenue climbed to €29.5 billion, compared to €28.1 billion the previous year, with net profit increasing by €32 percent to €1.09 billion. During the same time, KLM Group recorded a 6.2 percent growth in revenue to €8.4 billion and a 1-year operating profit growth increased to €736 million.

Collectively, these strong European airline earnings boost IAG share price outlook, reinforcing expectations that the company’s own update will confirm another strong quarter, supported by robust transatlantic and Latin American traffic.

IAG Share Price Technical Analysis

IAG share price is still in a good bullish channel and its price is around 420p having briefly touched the top Bollinger Band at 425p. In the 20-day SMA, the stock is safely above its 20-day SMA (407p) and lower band (390p) indicating that the overall uptrend just has minor overbought signals.

The RSI (14) is approximately 63, which is moderate bullish momentum although about to enter a possible cooling period in case the profit-taking takes over. The general setup is positive with good volume and a high price action that is above both moving averages.

IAG Key levels to watch

Immediate resistance: 425p – 441p
Support zone: 407p – 390p
Trend bias: Bullish over 400p; it can consolidate should RSI cool down to below 60.

In case IAG runs a sustained close of above 425p, the next goal will be at approximately 441p, which would be the highest point in October

On the other hand, when the movement is below 407p it could cause a pullback until 390p but the overall trend of the stock would still be upwards as long as the stock is above 380p.

Outlook: IAG’s Momentum Still Intact

The sharp rally of IAG indicates that the travel demand and shareholder trust have been restored before the earnings on Friday. The group seems to be in a good position to record another solid quarter with competitors reporting impressive performance and a stable fuel price.

Should the earnings be at or above the expectations, the breakout of over 441p may initiate the way to 500p before the year end. At this point, the flying route is not congested yet, and temporary drops can still be perceived as a chance instead of being considered a turbulence.

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