IAG Share Price Forecast - Buy, Sell or Hold?
Shares in International Consolidated Airlines Group SA (IAG), the owner of British Airways, Iberia, Vueling and others, collapsed to twelve-year lows during the pandemic before rallying nearly 160% higher.
With economies starting to reopen, travel restrictions ending, higher passenger numbers at airports and lower jet fuel prices it is now a very interesting time for airline stocks such as IAG.
In this article, we go through the IAG share price forecast for this year and beyond, what brokers and analysts are forecasting for the stock and how to invest in IAG shares with competitive commissions.
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IAG Share Price UK
IAG Broker Forecast
According to TipRanks who have polled 14 analysts in the last three months for their IAG share price forecast UK, there are 7 buy, 6 hold and 0 sell ratings on the stock.
Analysts at Bank of America and Citigroup are bullish on the stock and currently have a GBX 240.00p and GBX 195.00p price rating on the IAG’s share price respectively. However, there are some analysts who have a hold rating on the stock.
While there are currently more buy ratings for the IAG share price forecast, it doesn’t mean the share price will go up immediately. There are more analysts who have a hold rating on the stock than a sell rating which is likely due to a peak in travel demand from the pandemic period.
At the time of writing, there was around a 25% upside on the stock until the average price target of GBX 195.32p from the analysts who have been polled regarding an IAG share price forecast.
IAG Stock Forecast & History
The IAG share price collapsed during the pandemic – as did most other airline stocks and travel-related stocks. By the end of 2020, IAG’s revenue stood at only 30% of what it made in 2019. The third-quarter results of 2021 also disappointed the market as IAG reported they were at 43.4% capacity compared to the same time the year before.
The disappointing results in capacity, revenue and profits are unsurprising given the Covid-pandemic restrictions. Also, the rise of other Covid-variants hit the sector just as things were starting to pick up. Unless another pandemic is around the corner, the bad news and results may be starting to bottom out.
According to Fitch Ratings, the global revenue passenger in kilometres (RPK) is not expected to reach pre-pandemic levels until 2024. However, it is set to grow over the next few years which is important when analysing the IAG share price forecast 2025.
However, in 2022 IAG returned to profitability. In 2023, analysts are forecasting the airline to have a seating capacity that was equivalent to its 2019 capacity. As air travel picks up this is likely to translate into more revenue for IAG which operates a variety of different airlines including British Airways, Iberia, Aer Lingus, Iberia Express, Vueling and Level. The combination of having a full-service airline such as British Airways and a low-cost airline such as Vueling could be a good diversification.
This is because low-cost airlines provide a lot of volume of bookings but with lower margins. The full-service airlines mostly make their profits from serving business-class customers. In fact, some flights will operate at a loss from their economy passengers but reap the rewards through high-yielding customers in business or first class.
The pandemic forced businesses to move remotely and connect via web conferencing applications such as Zoom. This hurt airlines the most and business travel ground to a halt. While business travel is still expected to grow in 2023 it may not reach peak levels until 2025. An important consideration when thinking of an IAG share price forecast for 2025.
However, IAG's revenue per kilometre is now at its highest than ever before. With UK airports reporting higher passenger numbers and lower jet fuel prices, it could be an interesting time for IAG's share price which already gained more than 20% in the first quarter of 2023.
IAG Share Price Forecast Buy or Sell Analysis
As most analysts remain bullish on the long-term prospects of IAG’s share price, it fits into the style of value investing rather than growth investing. This is important to know as value-based stocks require more patience and a longer-term outlook rather than growth-based stocks.
At the start of 2023, global stock market indices enjoyed a decent rally higher. However, IAG lagged its benchmark FTSE 100 index, sending it to the potentially undervalued stocks category. In fact, IAG has been lagging behind the share price of low-cost airlines such as easyJet and Wizz.
In the above long-term, monthly chart for IAG’s share price the stock has stalled at the GBX 92.00 price level. From a technical analysis perspective, this is a known as double bottom chart pattern and is often seen as a bullish sign. The engulfing candlestick pattern from November at this double bottom is also considered a bullish sign as the price try to trend below the previous candle's low but then ended the month above the previous candle's high.
You can learn more about these types of patterns in the 4 Price Action Trading Strategies article.
How to Invest in IAG Shares
If you are interested in investing in IAG shares then you can do this from a variety of different accounts that Admirals has to offer:
- Invest.MT5 Account. This account allows you to buy shares and ETFs from 15 of the largest stock exchanges in the world.
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- Enjoy a low minimum commission of just 0.1% when trading UK shares, with a low minimum transaction fee of just 1 GBP which can be useful for small accounts.
- Trade.MT5 Account. This account allows you to buy and sell CFDs (Contracts for Difference) on more than 4,000+ instruments covering shares, indices, commodities, currencies and more.
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- Trade long and short! With CFDs, you merely speculate on the price movement of the market rather than owning the underlying shares.
- Trade on margin! For retail traders, you can open a position in IAG with just 20% of the full investment needed to be held as margin. This can amplify profits and losses so be careful!
- Enjoy a low minimum commission of just 0.1% when trading UK shares, with a low minimum transaction fee of just 1 GBP which can be useful for small accounts.
- Demo Account. You can open an Invest.MT5 and Trade.MT5 demo account for FREE and test out all of the features for yourself until you are ready to go live.
Regardless of which account type you open, you will have instant access to the world’s most popular trading platform MetaTrader 5. This can be used on desktop, web or mobile.
How to Buy IAG Shares in 4 Steps
You can buy shares in IAG from the Admirals Invest.MT5 account in just four steps with a 0.1% commission of the trade value and a low minimum commission of £1.
- Open an account with Admirals.
- In the Dashboard, click Trade on your account to open the web trading platform.
- Search for IAG at the bottom of the Market Watch window and drag the symbol on the chart to view its live share price.
- Use the one-click trading icon at the top left or right-click and open a trading ticket for more advanced entry options.
Why Invest in IAG shares with Admirals?
✔️ Admirals is authorised and regulated by the UK Financial Conduct Authority (FCA) and other well-known financial regulators.
✔️ Open an Invest.MT5 account to invest in stocks and ETFs to build a long-term portfolio and a passive stream of income through dividend investing.
✔️ Invest in stocks and ETFs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks with low minimum commissions of $1 or £1.
✔️ Trade share CFDs (contracts for difference) and potentially profit from rising and falling prices.
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FAQs on IAG Share Price Forecast
What was IAG highest share price in the long term?
The all-time high was GBX 505.86 recorded in May 1997. The second-highest price for the stock was recorded in June 2018 at GBX 481.98.
Is International Airlines Group a good stock?
IAG operates some of the biggest airlines in the world including British Airways, Aer Lingus, Iberia and Vueling among others. It’s also part of the FTSE 100 index which represents the largest 100 shares by market cap listed on the London Stock Exchange.
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