Iag News

The IAG share price has made a strong recovery in the past few days as investors reflect on the strong earnings. It has risen from this month’s low of 90.70p, which was the lowest level since 2020, to 120p. Other airline stocks like easyJet and Wizz Air have also recovered recently. So, what next for the British Airways and Iberia owner? Recovery in progress Airline stocks like IAG and easyJet have been in a strong bearish trend this year despite positive signs about the industry. Most companies have reported strong traffic metrics as regional and international travel rebounds. This happened even as flying inflation jumped to the highest level in years. Most importantly, recovery happened at a time when flight cancellations increased. British Airways had estimated that it will cancel over 30,000 flights in summer. As a result, IAG said that there was no indication of weakness in its bookings even as inflation continued rising. These bookings remained at expected levels for the time of the year. The same view was shared by other companies. EasyJet, the low-cost carrier, said that demand for travel remained robust as bookings remained vibrant. Therefore, IAG will continue its profitability streak. The management expects that it will have an operating profit of 1.2 billion euros in the third quarter, better than the median estimate of 814 million euros. This trend is also happening in other countries. In the US, Delta Airlines said that its adjusted net income in Q3 was $966 million while its revenue jumped to $12.84 billion. The CEO, Ed Bastian, said that demand was strong and consistent with the momentum it has built recently. Meanwhilem United Airlines said that its revenue was up by about 25% from 2019 levels. United had a profit of $942 million. IAG share price forecast The daily chart shows that the IAG stock price has made a strong recovery as I had predicted. This recovery came at a time when the stock made a falling wedge pattern. It has now managed to move above the upper side of this wedge. The stock also formed a hammer pattern, which is usually a bullish sign. It has moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. The stock will likely continue rising as buyers target the next key resistance level at 137p. A drop below the support level at 110p will invalidate the bullish view.