• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Here’s why IAG share price crashed, and why a rebound could be epic

by April 7, 2025
by April 7, 2025

The IAG share price has crashed hard this month, erasing most of its gains since last year, when it was one of the best-performing companies in the FTSE 100 index. It has dropped in the last three consecutive days, moving to a low of 210p, the lowest level since November last year. It is down by over 40% from its highest point this year. 

Why the IAG share price is crashing

The IAG stock price has crashed because of the ongoing trade war between the US and European countries. 

IAG is more exposed to the ongoing crisis because of the volume of trade it does between Europe and the United States. 

The company’s flagship brands like British Airways and Iberia make millions of euros a week from this route. As such, the ongoing trade war risks hurting the transatlantic route, especially when it is involving business travel.

Analysts expect many businesses to start cutting costs in the next few weeks as the trade war escalates. That’s because Trump set a 10% tariff on the UK and 20% for the rest of the European Union. In a note, analysts at TD Cowen said:

“We expect a world of slower growth, higher inflation, and a more isolationist US to significantly disrupt the competitive environment for airlines and ground the multiples back.”

Are these fears justified?

In theory, these fears are justified as tariffs will likely have a big impact across all industries. Also, the tariffs will make the cost of doing business much worse over time as companies will be forced to adjust their pricing.

However, there is a likelihood that these fears have been blown out of propotion for several reasons. First, IAG’s business may benefit from the tumbling crude oil prices. Brent, the international benchmark, has crashed to $63, while West Texas Intermediate (WTI) has moved to $59.55. 

Lower oil prices are good for airlines since it will help them lower the cost of doing business because jet fuel is the most important input cost. 

Second, airlines have gone through a worse period before. For example, they saw a sharp dive in demand after the 911 attack in 2001. Most recently, all of these companies suffered as they were forced to park their planes during the pandemic. 

Third, IAG’s business is doing well, as evidenced by the recently released annual results. The data showed that the company made over €32 billion in 2024, a 9% increase from a year earlier. 

This growth led to a 2.9% annual profit increase, which jumped to over €2.7 billion. The company guided to strong results this year as it reduced its debt. IAG also continued to pay dividends to its shareholders.

IAG share price analysis

IAG stock chart | Source: TradingView

The daily chart shows that the ETH price has crashed in the past few days as concerns about the transatlantic route remains. This decline is in line with our previous IAG stock forecast. It has dropped from 370p to 218p today as it crashed below all moving averages.

The Relative Strength Index (RSI) and the Stochastic Oscillator have all crashed to the oversold levels. 

Therefore, a contrarian case can be made on the IAG stock in the near term since the company has strong fundamentals. If this happens, it may bounce back to the 200-day moving average point at 276p.

The post Here’s why IAG share price crashed, and why a rebound could be epic appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Musk says he hopes for ‘zero tariffs,’ freedom of trade zone between US and Europe
next post
From Wall Street to GOP, Trump tariffs trigger growing opposition

Related Posts

Fund manager Stephen Yiu likes Rheinmetall stock but...

July 29, 2025

Morgan Stanley foresees volatility for Match, Bumble in...

July 29, 2025

William Blair is all praise for Tesla-Samsung partnership...

July 29, 2025

Glencore share price on edge as coal, copper...

July 29, 2025

US needs ‘more negotiations’ with India on trade...

July 29, 2025

Floating LNG terminals overcome hurdles, set for nearly...

July 29, 2025

AstraZeneca share price forecast after earnings

July 29, 2025

India overtakes China as top smartphone exporter to...

July 29, 2025

Europe markets open: FTSE, DAX futures up 0.2%...

July 29, 2025

Stellantis stock slides as reinstated guidance underwhelms investors

July 29, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Europe’s ECC Approves Decision for Satellite to Low-Power Device Communications; Advances Satellite-based LoRaWAN® IoT

    July 29, 2025
  • On Immigration and Free Speech, Many Miss the Bigger Picture

    July 29, 2025
  • NYC’s Economic Dysfunction Pushed Voters Too Far. Will They Now Choose Socialism?

    July 29, 2025
  • Trump’s Trade War Undermines the Dollar’s Global Reserve Status

    July 29, 2025
  • My Disagreement with John Tamny on SALT Deductions

    July 29, 2025
  • On Immigration and Free Speech, Many Miss the Bigger Picture

    July 29, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,002)
  • Editor's Pick (196)
  • Investing (185)
  • Stock (1,331)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Tariffs kick in

March 6, 2025

Trump says TikTok deal ‘coming soon’: a...

March 12, 2025

Asia-Pacific markets mixed as Japan inflation data,...

February 21, 2025