IAG share price faces turbulence as airline earnings stream in

By:
on Apr 17, 2023
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  • IAG stock price has moved sideways recently.
  • Delta Airlines published mixed financial results last week.
  • United, Southwest, and American will release their results this week.

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IAG (LON: IAG) share price has moved sideways in the past few days as focus shifts to the ongoing airline earnings. The shares were trading at 148.90p on Monday, where they have been in the past few days. This price is about 15% below the highest point this year.

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Airline earnings season

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IAG, the parent company of British Airways, will publish its next earnings on May 5 of this year. These results will provide more information about the company’s recovery. They will also provide more details about the firm’s business as the cost of doing business remains at an elevated level.

Before that, the IAG share price will react to results of other airline companies. While these airlines operate in different places, the results will provide more data about the state of the overall sector. 

Last week, Delta Airlines, one of the biggest players in the sector, published mixed financial results. Its revenue for the first-quarter jumped to $11.8 billion, which was a record high. Its total revenue was higher than the same period before Covid. 

Further, the company said that consumer demand for flying surged to pre-pandemic levels. In terms of revenue, the company said that its premium and loyalty generated 56% of its revenue. Delta also saw robust demand for its business and China travel.

The next major airline that will publish its results is United Airlines, which will publish its results on Tuesday this week. Analysts expect the results to show that its revenue jumped to $11.43 billion. Southwest, Airlines, which has a different model than IAG, will publish on April 27. American Airlines will publish on the same day.

Strong results from American airline companies will likely provide more information about what to expect from IAG. However, these firms use different operating model, with the domestic market playing an important role.

IAG share price forecast

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IAG chart by TradingView

The daily chart shows that the IAG share price has moved sideways in the past few days. As a result, it is trading at the 50-day and 100-day exponential moving averages and is below the year-to-date high of 173.65p. It is also slightly above the important support level at 141.50p, the highest point on November 15.

Therefore, I suspect that the shares will continue consolidating in the coming days as traders digest the upcoming earnings. If a bullish breakout happens, the next key level to watch will be at 173.65p, which is about 17.50% above the current level.

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