British Airways: IAG Share Price Tumbles 6% On a Downgrade

Shares of International Consolidated Airlines Group SA (LON: IAG) fell more than 6% after Davy Research analysts downgraded the stock from “Outperform” to “Neutral”. 

Moreover, the UK government announced travellers from France would have to quarantine on their return, sending leisure and travel stocks lower. 

Last month, Asktraders.com reported that the owner of British Airways is looking to raise 2.75 billion euros to fight losses of around 4 billion euros amid the pandemic. Davy’s analysts now predicted the fundraising will be “at least 50% dilutive”.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

“We don’t know yet whether their restructurings will enhance or weaken competitive positioning when we see other global airlines restructuring”, Davy said.

In another blow to the UK travel industry, France is placed on the quarantine list. This means that all travelers will have to go to quarantine once they return to the UK. 

IAG share price is trading more than 6% lower at 2.10. It is likely that IAG share price will head towards the next support line at 1.95.

• Read more about why IAG share price soared earlier this month
• Learn stock trading strategies
• Learn from experts on risk management in trading