Turbulent summer still in store as traffic picks up

  • Sectors : Airlines
  • Companies : Ryanair Holdings | Wizz Air Holdings | easyJet


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


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.

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Jul 14 2021, 07:00 IST/BST