The IAG share price is at risk of further losses as it breaches a key support level. The UK is moving to ease restrictions on carriers but it may not happen until August.
UK looks to bow to carrier demands
Boris Johnson’s government is looking to ease travel restrictions by allowing fully vaccinated travellers to fly to 150 countries without quarantine.
The new policy is expected to be signed within days but the measures are expected to come into play in August. The delay has hurt IAG share prices, which saw a dip below 200p on Wednesday. Carriers have stepped up demands to loosen restrictions with vaccines now at 65% in the UK, but the government could keep a tight rein on the ‘green list’ for now.
Further restrictions weigh
Further restrictions in other countries are weighing on the IAG share price with Dubai’s Emirates airline restricting its UK flights to London Heathrow and Birmingham. The move is another sign that countries are concerned about the rise of cases in the UK.
In Germany, Chancellor Angela Merkel has called for other European countries to follow Germany’s lead and ensure arrivals from high variant areas complete a mandatory quarantine.
Speaking in the Bundestag on Wednesday, Merkel said:
“In our country, if you come from Great Britain, you have to go into quarantine – and that’s not the case in every European country, and that’s what I would like to see,” Merkel said.
IAG Share Price Technical Analysis
The IAG share price has failed to get above the 200p level and has seen a bearish close below the symmetrical triangle support. There is now a risk of further losses in the carrier with support coming in at 190p or 185p. The 200p level will be the obstacle if the share price can rebound and make these lows a false breakout.
IAG Daily Chart
BA considers dropping Gatwick
British Airways is considering permanently stopping its operations at London Gatwick airport in order to consolidate its operations at London Heathrow. The move is aimed at maintaining the current slots it holds at the airport after temporary waivers are lifted.
As the airline industry mounts a weary recovery, airlines are seeking to position themselves for the best possible position to allow them to compete in a changing world for air travel. The move may help IAG if it allows for more efficient movement but consumers will be hurt and Gatwick will feel the pinch.