The IAG share price held steady on Tuesday as investors position themselves for the upcoming airline earnings season. The stock is trading at 163p, which is about 35% above the lowest level in November. It is still about 26% below the highest level in 2021.
IAG and other aviation stocks have done well even as the industry goes through challenges. The number of Omicron cases have led to a slowdown in global demand.
At the same time, many airlines are seeing rising number of absentee employees as many of them suffer from Covid-19. For example, in the United States, United Airlines said that over 3,000 employees were out of work with Covid.
The same trend has happened in other airlines, leading to thousands of flight cancellations. Therefore, the IAG share price will react to the latest earnings by Delta Airlines, the giant American airline.
Analysts expect the results to show that the company’s revenue increased in the fourth quarter. It will also warn about the current business conditions. Other American aviation companies like Southwest and United will publish their results next week.
The IAG share price will react to Delta’s results because the two companies have a similar business model. The results will provide more color about the performance of airlines.
The daily chart shows that the IAG share price has been in a strong bullish trend in the past few weeks. As a result, the stock has moved above the 25-day and 50-day moving averages. The two averages are about to make a bullish crossover. The price is also below the descending trendline shown in blue.
Therefore, there is a likelihood that the IAG share price will continue rising as bulls target the blue trendline at around 180p. This view will be invalidated if the stock moves below the key support at 153p.
This post was last modified on Jan 12, 2022, 09:38 GMT 09:38