Shares

IAG Share Price Falls on Heathrow’s Proposed 50% Passenger Charge Hike

Published by
Written By: Eno Ikenna Eteng
Share
    Summary:
  • The IAG share price falls steeply as Heathrow airport proposes a 50% increase in passenger charges in 2022.

The IAG share price continues its freefall, hitting a third consecutive day of steep losses. This decline comes on the back of a proposed 50% increase in airport charges at Heathrow airport.

Passenger charges could increase to between £24.50 and £34.40 in 2022, which the airlines fear could stifle the recovery in passenger traffic following the worst of the pandemic.

British Airways, part of the IAG Group, uses the airport for many of its routes. The IAG share price sold off steeply on Wednesday, falling more than 5% for the third day in a row.

IAG Share Price Outlook

The rejection at the 200-day moving average set up the breakdown of the neckline of the head and shoulders pattern at 177.46. This move marks the pattern’s completion, which has led to a measured move that is just short of its potential completion at 156.40. A continued decline of the IAG share price targets 149.72, with 143.94 lining up as a potential downside target.

On the flip side, a bounce on 156.40 sets up a retracement rally towards 167.54, with the former neckline serving as an additional upside target. This rally may be an opportunity for rally-selling if the sentiment on the stock remains negative.

IAG Share Price: Daily Chart

Follow Eno on Twitter.

This post was last modified on %s = human-readable time difference 14:21

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng