This Tuesday, the IAG share price declined to continue the stocks’ dreadful run in the latter half of 2021. However, this decline appears to have been capped on the day by news of the airline’s addition of capacity to the online booking portal CargoAi.
IAG Cargo manages cargo capacity operations on several airlines. The latest capacity offering will take it into 60 countries. The changes come as the airline seeks to expand its alternative business operations, following the continued downbeat trend of its passenger traffic business.
A major reason for the decline in the IAG share price is the pandemic’s impact on its business model, which focuses on long-haul international flights rather than short flights. Long-haul flights come with many costs for passengers, including at least two PCR tests for COVID-19, quarantine in some cases (at the passenger’s expense) and other expenses. These impediments continue to limit passenger traffic, keeping the numbers well within the pandemic lows.
IAG share price is down 2.23% as of writing.
Tuesday’s decline has found support on the daily chart at the 143.94 price mark. This move also coincides with a bounce off the channel’s return line. Additional downside targets at 136.64 (28 January low) and 133.38 only come into the picture if the channel breaks down along with the 143.94 support.
On the flip side, 149.72 could see some action if the bulls build on the bounce. However, additional bullish momentum is needed to crack the 156.40 resistance (17 February and 19 July lows), opening the door for a potential rush towards 167.54 (30 June and 9 August lows). Additional recovery from this point brings in 177.46 as yet another potential barrier to the upside.
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