IAG Share Price Nudges Higher Amid Bumper Quarterly Profits

IAG share price ticked higher on Friday on the back of stronger-than-expected Q1 profits. The IAG stock price jumped 2.31% to 150.50p. The British airline company has a total market cap of 7.292 billion. The stock has performed relatively well this year, rising 19.16% in the year to date. Even so, it remains more than 13% below its highest level this year.

Q1 Profits

IAG share price was in the spotlight earlier on Friday after the company posted its first annual profit since 2019, before the Coronavirus pandemic. IAG owns British Airways, Iberia, Aer Lingus, and Vueling. The company announced on Friday bumper summer bookings as post-pandemic travel demand gathers pace.

Earlier on Friday, IAG posted an operating profit of some €9 million, up from a €178 million loss in the same period in 2022 amid strong travel demand despite the cost of living crisis. According to the airline, strong ticket sales for the summer and winter seasons that beat expectations meant 2023 would come in above previous forecasts.

The British Airways parent, IAG, also raised its annual profit forecast, buoyed by its customers’ willingness to stomach higher ticket prices and a slip in fuel prices in the aviation sector. The group said it now expected annual profit to come in above the top end of a $2.0-$2.5 billion range given in February. The top end of that range already represented a jump of as much as 90% on last year’s result. IAG also said its net debt will come down by the end of the year, after previously saying the figure would remain flat. 

IAG Share Price Forecast

IAG share price has been trading sideways for the past few weeks, trading between the tight range of 144.70p and 156.25p. The stock has managed to remain slightly above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) has moved higher to the neutral zone. It has also moved above the 50-day and 200-day exponential moving averages.

Therefore, I expect the IAG share price to continue moving higher in ensuing sessions as markets continue to digest the latest interest rate hikes by the US Federal Reserve and European Central Banks. A move past the key resistance level at 156.25p will give the bulls control of the market, targeting the next resistance level at 171.70p. Conversely, a flip below the crucial level of 144.70p will invalidate the bullish view.

IAG Price Chart

Leave a Reply

Your email address will not be published.