Q3 results season: ‘a moveable feast’

  • 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 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


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.

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Oct 19 2021, 06:45 IST/BST