The IAG share price is down by a percentage point, continuing yesterday’s 0.7 per cent drop. However, the drop is majorly due to a down gap after prices opened almost 2 per cent below yesterday’s closing price.
Over the past month, the IAG share price is down by almost 4 per cent, with year-to-date data showing the company is down by 28 per cent. Part of the reason why we have seen the company struggling in the markets is due to recent cancellations. According to data, the company cut 10,300 short-haul flights scheduled between August and the end of October. The additional flight cancellations in the coming months will add to an already dire situation. They will bring the total number of cancellations from March to the end of October close to 30,000.
The staffing issue in the past few months has also become a major concern for the company. Like other airline companies, IAG has struggled to rehire the thousands of employees it axed at the start of the pandemic. With almost all restrictions being lifted, the company has continued to leave most of its customers frustrated. This damning indictment is likely to see its struggle in the markets continue as investors take notice.
Despite a recent resurgence of the IAG share price, the past few trading sessions are giving signals that it may be returning to a bearish market. Today, having opened with a down gap of almost 2 per cent and extending yesterday’s 0.7 per cent drop, it is likely that we will see the prices continue to fall.
There is a high likelihood that we will see the prices trading below the 109p demand level in the next few trading sessions. If the current problems continue to persist, we may see the prices drop to trade below the 100p price level. My strong bearish analysis will only be invalidated if prices close above the July price high of 117p. At that point, it will be clear the trend is upwards.
This post was last modified on Jul 26, 2022, 14:20 BST 14:20