The IAG share price continued its strong trajectory this week as investors reacted to encouraging earnings from American airline companies and the stabilizing jet fuel prices. It has jumped in the last four consecutive weeks, moving to a high of 385p, up by over 84% from its lowest point in April.
The airline industry is booming
The IAG stock price is firing on all cylinders as investors cheered the robust earnings by some of its competitors.
In a statement on Wednesday, United Airlines, the second-biggest carrier in the US, said that it was experiencing strong demand amid declining geopolitical and economic uncertainties.
The company’s revenue crossed the $15 billion milestone for the first time, and the management noted that they had started to see demand acceleration this month. Its CEO said:
“The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year.”
These results came a week after Delta Air Lines published strong numbers. Its revenue came in at $16.6 billion, while the operating income and pre-tax income rose to $2.1 billion and $2.6 billion, respectively.
Delta’s management noted that demand was starting to pick up after falling in April when Trump unveiled his ‘reciprocal’ tariffs. Consequently, the management restored its guidance for the year. It now expects that its EPS will be between $5.25 and $6.25, while its free cash flow will be between $3 and $4 billion.
Read more: IAG share price has crashed: to get worse before rebounding
Why these results matter for IAG
These results bode well for IAG, a company that owns several popular brands, including British Airways, Aer Lingus, and Iberia. That’s because IAG has some overlaps with these companies because of its large transatlantic business.
United and Delta’s earnings mean that Delta will likely publish strong results and issue positive guidance on August 1.
The most recent numbers showed that the company’s revenues rose by 9.6% in the first quarter to €7.04 billion amid rising demand. IAG’s profit also jumped from €4 million to over €176 million, while the earnings per share (EPS) jumped to €3.6.
The management left its forward guidance unchanged as it banked on its key destinations in Europe, Latin America, and North America.
IAG has also improved its balance sheet and increased its shareholder returns. It repurchased shares worth over €530 million this year, and plans to hit its €1 billion target.
The company is also benefiting from the stabilizing jet fuel prices. The average jet fuel price is $ 92.50, a slight increase from the previous week.
IAG share price technical analysis
The daily chart shows that the IAG stock price has been in a strong bull run in the past few months. It recently crossed the important resistance level at 361p, its highest point in February. Moving above that level was notable as it invalidated the forming double-top pattern, a popular bearish reversal sign.
IAG stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA). Its top oscillators, like the Relative Strength Index (RSI) and the MACD, have all pointed upwards.
Therefore, the stock is likely to continue rising as bulls target the key psychological point at 400p. A move below the support 360p will invalidate the bullish view.
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