IAG share price nears death cross as it faces a double whammy

Core Viewpoint - IAG is experiencing significant challenges due to rising energy prices and flight disruptions, leading to a notable decline in its share price, which has dropped nearly 25% from its peak this year [1][7]. Group 1: Financial Performance - IAG's revenue reached a record high of €33.2 billion, with an operating profit before exceptional items increasing by 13.1% to €5.02 billion [5]. - The company has initiated a €1.5 billion share buyback program, exceeding the €1 billion buyback from the previous year, and has continued to grow its dividend [5]. Group 2: Market Conditions - Crude oil prices have surged, with Brent and WTI reaching $105 and $98, respectively, contributing to increased operational costs for airlines [2]. - The average jet fuel price has risen by 64% from the previous month, now at $157 per barrel, with Asia and Oceania being the most affected regions [3]. Group 3: Demand Issues - IAG is facing a decline in demand, particularly for its Middle East routes, as travel has been impacted by the ongoing Iranian war, which has led to temporary shutdowns of key airports [4]. - Airlines, including IAG, have been forced to raise fares and implement surcharges to offset the rising costs of crude oil and jet fuel [4]. Group 4: Technical Analysis - IAG's stock is approaching a death cross pattern, indicating a potential bearish reversal as the 50-day and 200-day Weighted Moving Averages converge [7][8]. - The stock has fallen below the Ichimoku cloud indicator, with the Supertrend turning red, suggesting a continued downward trend [9].