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Oct 19 2021, 06:45 IST/BST
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|
|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.