IAG Share Price Loses Intraday Gains On Planned Long-Haul Air Passenger Duty Hike

Summary:

The IAG share price loses intraday gains on planned introduction of 91-pound air passenger duty fee for long-haul flights.

The IAG share price lost all its intraday gains after the UK finance minister Rishi Sunak announced an increase in the air passenger duty for long haul flights. IAG typically covers long haul routes, and this could impact passenger fares on its routes going forward.

Under the new proposals announced in Mr Sunak’s budget briefing, flights between UK airports will attract lower air passenger duties from April 2023 while 91 pounds will become the new charge on the economy class of long-haul flights will be raised to 91 pounds.

The IAG share price gained initially but has shed off almost all the day’s gains and now trades 0.01% higher.

The failure of the day’s candle to close higher than Tuesday’s candle could put the IAG share price under pressure, and this could touch off the 156.40 support level. If the decline continues, 149.72 and 143.94 become additional targets to the south.

If the bullish momentum recovers and posts a new daily high, 167.54 and 177.46 become the immediate price targets. A continued advance attains 187.24, with 194.94 (previous head) lining up to become a potential target.