IAG Share Price Soars On Increased Profits

Summary:
• IAG Share Price Forecast: LON: IAG is looking very bullish due to a massive increase in its profits. The shares need to flip 169p into support.

AG (LON: IAG) share price is rising for the fourth consecutive day. The British Airways owner reported a profit of €1.3 Billion in its half-yearly results, as compared to a loss of €446 in the same period last year. The shares of the airline group jumped by a massive 10%, from 155p on Thursday to 170p at press time.

The extreme weather conditions in Greece triggered a pullback in airline shares last week. A lot of concerns were raised by analysts about a decrease in leisure-based traveling due to Greece wildfires. However, the ongoing surge in IAG shares shrugs off those concerns. The stock is now touching its highest level since February 2023

IAG Smashes Analysts Forecasts

The airline group posted its half-yearly accounts this Friday and beat the analysts’ forecast by 40%. The IAG Chief Luis Gallego explained that this massive increase In profits was due to the ending of the pandemic restrictions. This led to a boom in demand for leisure travel. Another reason behind increased profits was the increased fares.

IAG also mentioned that their flight capacity has successfully reached 94% of pre-pandemic levels. The British Airline owner is also confident in the strong customer demand for their services, claiming that 80% of the passenger revenue is already booked for the third quarter. This could be very positive news for IAG share price.

IAG Share Price Retests Key Resistance Level

As mentioned in the chart below, LON: IAG is currently retesting the resistance at 170p. In my previous analysis, I predicted the bounce from the upward trendline and the 200 MA. Since that analysis, the share price is already 14% up, and more upside is on the cards.

If the price successfully flips the resistance level of 169p into support, 221p could be the potential target for the IAG share price. However, in case of another rejection, another retest of the trend line or 200 MA would be on the cards. Both are mentioned in the following chart.

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