Download full report with analyst certification and important disclosures
Oct 19 2021, 06:45 IST/BST
Airlines
Q3 results season: ‘a moveable feast’
- Sectors : Airlines
- Companies : Lufthansa | easyJet | Air France KLM | IAG | Wizz Air Holdings | Ryanair Holdings | Norwegian Air
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Air France KLM | UNDERPERFORM | 11/05/20 | Neutral | 20/01/20 | 413c |
| easyJet | NEUTRAL | 14/07/21 | Outperform | 22/01/21 | 619p |
| IAG | NEUTRAL | 12/08/20 | Outperform | 31/08/18 | 174.7p |
| Lufthansa | UNDERPERFORM | 08/06/20 | Neutral | 30/10/18 | 585c |
| Norwegian Air | NEUTRAL | 01/09/15 | Underperform | 22/01/15 | 1007nok |
| Ryanair Holdings | OUTPERFORM | 07/12/09 | Neutral | 02/11/09 | 1678c |
| Wizz Air Holdings | UNDERPERFORM | 21/04/21 | Neutral | 09/09/19 | 4507.0p |
DAVY VIEW
To paraphrase Hemingway, airline earnings are ‘a moveable feast’; in this report, we make adjustments ahead of earnings season next week, including rising fuel/environment prices and supply/demand trends. The result is a difficult summer followed by another turbulent winter, which could make market share gains even more pronounced into next Easter (mid-April 2022) and summer. There have also been two rights issues (Lufthansa, easyJet), while Air France-KLM is close to its own recapitalisation. Meanwhile, the new Alitalia (ITA) began operations on October 15th with 52 aircraft (compared with 110 aircraft in the previous entity); Eurocontrol expects a recovery to 2019 flight levels in Europe possibly as early as 2023 (previous forecasts were for 2024 at the earliest); and the US is likely to re-open for inbound travel on November 8th.
