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Jul 14 2021, 07:00 IST/BST
Airlines
Turbulent summer still in store as traffic picks up
- Sectors : Airlines
- Companies : Wizz Air Holdings | Ryanair Holdings | easyJet
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| easyJet | NEUTRAL | 14/07/21 | Outperform | 22/01/21 | 900p |
| Ryanair Holdings | OUTPERFORM | 07/12/09 | Neutral | 02/11/09 | 1599c |
| Wizz Air Holdings | UNDERPERFORM | 21/04/21 | Neutral | 09/09/19 | 4619.0p |
DAVY VIEW
EU Digital COVID Certificates are now in operation, and Eurocontrol data suggest intra-EU traffic is just 37% down on 2019. Summer was delayed, however, and costs for the consumer (PCR testing, airport delays) and airlines (fuel, navigation, maintenance) still weigh. Traffic may have reached an inflection point, but financial and cash-flow inflections are yet to come. As such, we downgrade easyJet to ‘Neutral’ (price target £8.5) and retain ‘Underperform’ on Wizz (price target £40). Ryanair is the only airline we have at ‘Outperform’ (price target €18) with medium-term prospects remaining stellar.
