IAG Share Price Dips On Flight Cancellations Over 5G Concerns

Summary:

The IAG share price is trading lower after British Airways cancelled several flights over threats of the 5G mobile equipment to aircraft.

The IAG share price is on course for a second day of losses, after the company cancelled its US flights over the concerns raised about the safety of the 5G telephony equipment with regards to aircraft components.

British Airways, which is part of the IAG Group, has cancelled US flights over fears that the activating the C-band component of mobile services near US airports could disable aircraft navigation systems.

Following the issuance of safety advisory to airlines by the UK Civil Aviation Authority, the airline cancelled flights to major US cities on Wednesday, saying in a statement that “safety is always our priority”.

This adds yet another stumboing block to the airline’s attempts at getting its long-haul flights to the US up and running to pre-pandemic levels.

The IAG share price is down 2.91% as of writing.

The intraday decline came off the rejection at the 167.54 resistance on Tuesday. This puts the price candles on the pathway towards the 156.40 support, the first target in line for bears. If the bulls fail to defend this support, the pathway continues towards 149.72. 143.94 and 136.64 will serve as additional southbound targets.

On the flip side, the bulls would hope for a bounce on support that takes out the 167.54 resistance. This barrier must give way for northbound moves that target the 177.46 resistance initially. A continuation of the advance beyond this level opens the door towards 187.24 and potentially, 194.94.