With crisis comes opportunity

  • Sectors : Airlines
  • Companies : Lufthansa | easyJet | Air France KLM | IAG | Wizz Air Holdings | Ryanair Holdings | Norwegian Air


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Air France KLM NEUTRAL 20/01/20 Outperform 21/01/19 505c
easyJet NEUTRAL 20/06/18 Outperform 12/12/17 575p
IAG OUTPERFORM 31/08/18 Neutral 22/08/17 212.2p
Lufthansa NEUTRAL 30/10/18 Outperform 27/01/17 950c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 909nok
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 943c
Wizz Air Holdings NEUTRAL 09/09/19 Outperform 20/06/18 2294.0p


COVID-19 is the biggest crisis the airline industry has faced and it will be different afterwards. We discuss the following themes here: liquidity, consolidation, state intervention and longer-term consequences. Equity values have collapsed, credit spreads have pushed out remarkably and liquidity is king. In Europe, 95% of aircraft have stopped flying. However, our modelling shows that most of the leading airlines’ equity will not be permanently impaired, notably those with asset backing, and there will be opportunities at the end of this. Ryanair and IAG look to be the most secure and we reiterate our ‘Outperform’ ratings.

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Mar 25 2020, 06:30 GMT