IAG share price has moved sideways in the past few days after hitting a crucial resistance level. It was trading at 437p on Monday, a few points below the year-to-date high of 450p. It remains 440% above its lowest level during the pandemic, bringing its market capitalization of over £19 billion.
International Consolidated Airlines has become the fourth-biggest airline globally by market cap after Delta Air Lines, United Airlines, and Ryanair. So, will the IAG stock price continue rising or retreat in the coming weeks?
IAG in focus ahead of want
IAG stock price has remained in a bull run this year as market conditions continued improving. For example, data compiled by IATA shows that the average jet fuel price dropped to $256, down by 1.3% from the previous week.
Jet fuel prices may continue falling in the near term unless Donald Trump decides to attack Iran. Iran has warned that any attack by the Americans will lead to a major escalation targeting the Middle East and the Strait of Hormuz.
At the same time, there are signs that airfares are rising modestly, a move that may help IAG boost its profits in the near term. There are also signs that IAG will not be substantially from the recent announcement by Donald Trump pausing visas on tens of countries.
The most recent financial results showed that IAG’s business continues to improve. Its most recent results showed that the company’s revenue was largely flat in the three months to September 30th, while its profit after tax slipped by 2.3% to over €1.4 billion. Its operating profit rose by 2% to over €2.05 billion.
The financial results showed that the nine-month revenue rose by 4.9% to €25.2 billion, while the after-tax profit soared by 15.5% to over €2.7 billion.
The company predicted that the full-year results will be better than the previous guidance, thanks to its strong geographical presence in key areas like Europe, South America, and North Atlantic.
Is IAG overvalued or a bargain?
Meanwhile, with the IAG share price trading near its all-time high, there are concerns that the company has become highly overvalued.
Data compiled by Seeking Alpha shows that the company’s trailing twelve-month (TTM) price-to-earnings (PE) remains at 7.8, much lower than Delta Air Lines’ 9, Southwest’s 64, United Airlines’ 10, and American Airlines’ 94.
These numbers mean that IAG is trading at a bargain price compared to its top rivals. The forward price-to-earnings ratio of 7.2 is also much lower than that of other companies like Delta, United Airlines, and American Airlines.
Analysts believe that the company will continue doing well. The average estimate of last year’s operating profit is €5 billion, while the current year’s profit will be €5.2 billion. The next financial results will come on February 27.
IAG share price technical analysis
IAG stock chart | Source: TradingView
The weekly timeframe chart shows that the IAG stock price has been in a strong uptrend in the past few years. This rally started after the stock formed a double-bottom pattern at $86.20 in September 2020 and September 2022.
It jumped above the key resistance level at 214p in November 2024. Most importantly, it retested that level in March 2025, which is a form of a break-and-retest pattern, a common bullish continuation sign in technical analysis.
The stock remains above the 50-week and 100-week Exponential Moving Averages (EMA). It is also hovering at a crucial level, which was its highest level in January 2020.
A closer look shows that the stock has formed a cup-and-handle pattern, a common bullish continuation sign in technical analysis. It is now sitting at the upper side of the cup.
Therefore, the most likely scenario is where the stock continues rising, with the next key resistance level to watch being at 500p.
https://invezz.com/news/2026/02/16/iag-share-price-signals-bullish-breakout-toward-500p-ahead-of-earnings/
