The past month has been pretty gruelling for shareholders of International Consolidated Airlines Group (LSE: IAG). Since Bonfire Night, the IAG share price has been the fourth-worst performer in the FTSE 100.
On Friday, the IAG share price closed at 131.68p, down 1.7% last week. In the month to last Friday, the stock crashed by more than a quarter (-26.9%). In addition, it collapsed 35% over six months and lost 22.3% over one year. At its 2021 peak, the price hit 222.1p on 16 March. By last Friday, it had lost over 90p, down 40.7% from its peak.
IAG jumps 8% on Monday
Monday saw some relief for shareholders in the airline group, owner of British Airways, Iberia and Aer Lingus. At yesterday’s close, the IAG share price had jumped to 142.34p, gaining 10.64p (+8.1%) since Friday. This rebound made IAG the FTSE 100’s best-performing share on Monday. What caused this sudden change of mood by investors?
For the record, the FTSE 100 itself added almost 110 points on Monday, a gain of 1.5%. Furthermore, only 14 Footsie stocks fell yesterday, with losses ranging from a mere 0.1% to 2.7%. In other words, it was a broadly positive day for UK stocks. This followed growing confidence that the latest Omicron variant of Covid-19 could be less virulent than first feared. Thus, Monday was a risk-on day, with investors confidently buying stocks and pushing prices higher. And, as risks of further global lockdowns temporarily recede, the airline operator’s share price was one of the biggest beneficiaries from Monday’s optimism. But it may well remain volatile going into 2022.