The IAG share price leapt 8% on Monday! Here’s why

After a terrible month in which it crashed 27%, the IAG share price rebounded by over 8% on Monday. What sparked the revival of this popular stock?

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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.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.

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