IAG share price started the year well, rising to a key resistance level at 430p, its highest level since January 2020, and a few points below its all-time high of 438p. It has been in a strong bull run, rising by 380% from its lowest point in 2022.
IAG’s business has had major tailwinds
IAG, a leading airline company that owns popular brands like British Airways, Aer Lingus, LEVEL, and Iberia, has been in a strong bull run since the pandemic ended a few years ago.
The surge has mirrored the performance of other global airline companies like Ryanair, Delta, and United. This trend continued last year as global trade maintained its resilience despite the volatile trade policy environment.
READ MORE: Here’s why the Ryanair share price surged in 2025
IATA believes that the recovery will accelerate this year. It expects that passenger traffic will grow by 4.9% this year, led by the Asia Pacific region. Also, it expects that load factor will rise to 83.8%, while ancillary revenue will continue expanding.
As a result, IATA expects that airline net profit will jump to $41 billion, while the net margin will be 3.9%. This growth will happen despite the softening fares and high cost pressures.
IAG, as one of the top global airline companies, is set to benefit from this growth. Its main advantage is in the diversification of its business, with a strong performance on the TransAtlantic route and in other areas like Asia.
The most recent metrics showed that IAG’s revenue and profitability rose in the first nine months of the year. Its revenue rose by 4.9% to €25.2 billion, while its profit after tax rose by 15.5% to €2.7 billion. However, its revenue was flat at €9.32 billion, while its profit after tax fell by 2.3% to €1.4 billion.
IAG has continued to return cash to its shareholders, completing over €1 billion in share buybacks. It plans to announce another share repurchase program in February and has continued to pay its dividends.
The company is also trading at a discount, with its normalized price-to-earnings (P/E) ratio at 7.08, lower than Ryanair’s 13 and EasyJet’s 7.50. Delta has a multiple of 11, while United Airlines has a multiple of 10.5.
IAG share price technical analysis
The weekly chart shows that the IAG stock has been in a strong bull run, rising from a low of 88.76p in 2022 to a high of 430. It has moved above the important support level at 360p, its highest point in February last year.
The stock has jumped above the 50-week and 100-week Exponential Moving Averages (EMA). At the same time, the Relative Strength Index (RSI) has continued rising and is nearing the overbought level at 70. It has formed a cup-and-handle pattern.
Therefore, the stock will likely continue rising as bulls target the psychological point at 450p. A move above that level will point to more gains, potentially to 500p. A drop below the support at 360p will invalidate the bullish outlook.
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