- IAG shares trade near multi-year highs as airline demand, buybacks, and improving margins support the uptrend.
- Technical indicators suggest bullish momentum remains intact, with 430p acting as a key breakout level.
- Outlook for 2026 stays positive as valuation discounts and sector recovery continue to attract investors.
Shares in International Airlines Group remain near multi-year highs at the start of 2026, extending a powerful rally that has reshaped investor sentiment toward European airline stocks. After rising nearly 380% from its 2022 lows, IAG is now trading close to the 430p resistance zone, just shy of its all-time high of 438p set before the pandemic.
While recent headlines around a $1.1 million US fine on British Airways briefly added noise, the penalty is immaterial relative to group earnings and has not altered the broader bullish structure visible on the chart.
Airline Demand Tailwinds Continue to Support IAG
IAG continues to benefit from strong long-haul demand, particularly across transatlantic routes, alongside steady recovery in premium travel. Industry data points to resilient passenger volumes heading into 2026, with load factors remaining high even as fares normalise.
The group’s diversified portfolio, spanning British Airways, Iberia, Aer Lingus, LEVEL, and Vueling, has helped smooth regional volatility. Financially, IAG remains in a strong position after reporting higher revenues and profits through 2025, supported by cost discipline and robust cash generation.
Shareholder returns remain a key pillar of the investment case, as reported by The Globe and Mail. IAG completed over €1 billion in share buybacks last year and continues to trade at a valuation discount versus global peers, reinforcing its appeal to value-focused investors.
IAG Technical Analysis: Bull Trend Remains Intact
The daily chart shows IAG holding comfortably above all major moving averages, confirming the strength of the prevailing uptrend. Price action remains constructive after consolidating below the 430p resistance zone, with higher lows preserved throughout the second half of 2025.
Momentum indicators support the bullish bias. The Relative Strength Index is approaching the upper-60s, signalling strong momentum without entering extreme overbought territory. Meanwhile, the MACD remains in positive territory with the signal line above zero, indicating trend continuation rather than exhaustion.
Key technical levels to watch include:
- Resistance: 430p, followed by the psychological 450p level
- Support: 400p, then stronger trend support near 360p
A sustained daily close above 430p would likely trigger an upside extension, while a break below 360p would be required to materially weaken the bullish structure.
IAG Outlook for 2026
Barring a sharp deterioration in macro conditions or a collapse in travel demand, IAG enters 2026 with momentum firmly on its side. Strong sector fundamentals, improving balance-sheet flexibility, and constructive technical signals suggest the stock remains positioned for further gains, with 450p emerging as a realistic upside target if resistance gives way.
IAG shares are rising due to strong airline demand, improved profitability, continued share buybacks, and positive technical momentum on the chart.
Yes. IAG trades at a lower valuation multiple than several global airline peers, which continues to attract value-focused investors.
A move toward 450p is possible if the stock breaks and holds above the 430p resistance level while airline demand and earnings remain stable.