IAG share price rose sharply on Friday, gaining 4.8% to trade at GBX 354 at the time of writing. The upside is supported by strong earnings results which beat analysts expectations. Also, the conglomerate, which owns multiple airlines, including British Airways, Aer Lingus, Iberia and Vueling, announced €1 billion share buyback program, which has added momentum to the share price upside.
IAG (LSE: IAG) reported adjusted operating profits of €4.44 billion, exceeding analysts’ forecast figure of €4.08 billion. Meanwhile, quarterly revenues grew by 11% to €8 billion. However, net profit came in at €392 million, missing the consensus forecast €498 million.
Air travel has been on a recovery trajectory in the last year, with revenues projected to cross the $1 trillion mark in 2025. In addition, global oil prices have been on the downward trajectory in the last year, declining by 10.9% and helping airlines cut costs.
In addition, cooling geopolitical tensions in the Middle East and US President Donald Trump’s new approach to the Russia-Ukraine war augurs well for the air travel industry. IAG projects that its available seats per kilometer (ASK) will grow by 3% in 2025, mirroring analysts’s forecasts. This scenario favours IAG share price to stay on the growth path in the medium-term.
IAG Share Price Prediction
IAG share price pivots at GBX 350 and action above that level will favour the buyers to stay in control. Immediate resistance is likely to come at GBX 357, but a stronger momentum will break above that level and potentially test the second resistance at GBX 365.
On the other hand, breaking below GBX 350 will shift the momentum to the downside. In that case, IAG share price could find the first support at GBX 345. The upside narrative will be invalid if the price breaks below that level. That momentum could extend to test the second support at GBX 340.
