By The International Consolidated Airline (IAG) share price has thrived in the past two years. It rose by over 90% in 2024, becoming the best-performing company in the FTSE 100 index. It jumped to a high of 315p this week, its highest level since February 2022.
According to TradingView, shares of the British Airways parent company are up by near 250% from the lowest point in 2022. This recovery aligns with other airline stocks like Delta and United Airlines. So, will the IAG stock price continue rising or will it retreat in 2025?
IAG share price technical analysis
The weekly chart shows that the IAG stock price has remained in a strong uptrend after bottoming at 81.90p during the pandemic. It rallied above the crucial resistance level at 220p, its highest level in March 2021, and the 38.2% Fibonacci Retracement point.
That price was also the upper side of the ascending triangle pattern, which comprises a horizontal line and an ascending trendline. The stock moved above the 50% Fibonacci Retracement point at 265p.
Also, it formed a golden cross chart pattern as the 50-week and 200-week moving averages crossed each other on October 7. Oscillators like the Relative Strength Index (RSI) and the MACD indicators have risen.
The IAG stock price is slowly forming a bullish flag chart pattern, a popular continuation sign. It has also moved to the strong pivot reverse point of the Murrey Math Lines (MML) tool.
Therefore, the stock will likely continue rising as bulls target the next point at 350p, which coincides with the weak, stop & reverse level of the MML. The stop-loss of this trend will be at the top of the trading range at 280p.
IAG stock chart | Source: TradingView
Airline growth to continue
A potential catalyst for the IAG stock price will be the strength of the civil aviation industry even as pricing challenges continue.
In a recent note, IATA estimated that net profits of global airlines will rise to $36.6 billion, a slight increase from the $31.5 billion it made in 2024. The operating profit will be $67.5 billion, while the return on invested capital will be 6.8% as the revenue jumped to $1 billion.
IAG will be a key beneficiary of this growth because it is one of the biggest airlines globally, owning companies like British Airways, Aer Lingus, and Vueling.
Lower jet fuel prices will be another catalyst for the company, as Donald Trump plans to boost oil production this year. IAG will benefit from this since energy is one of its biggest costs.
The most recent results showed that IAG’s business continued doing well in the year’s first nine months. Its revenue rose from €22.2 billion in the first nine months of 2023 to €24 billion.
IAG has also become a highly profitable company as its profit after tax rose from €2.1 billion to €2.34 billion. This growth has helped start paying dividends for the first time in years.
The company has also improved its balance sheet, with net debt at €6.18 billion, down from €9.25 billion a year earlier.
The risk, however, is that airlines are highly cyclical, with companies experiencing booms and busts. As such, after doing well in the past few years, there is a risk that it may retreat this year if its business starts to slow.
Read more: IAG share price is firing on all cylinders: any more upside?
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