Airlines in 2022 – like a coiled spring

  • 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 396c
easyJet OUTPERFORM 24/01/22 Neutral 14/07/21 630p
IAG NEUTRAL 12/08/20 Outperform 31/08/18 159.3p
Lufthansa OUTPERFORM 24/01/22 Underperform 08/06/20 688c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 1155nok
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 1662c
Wizz Air Holdings UNDERPERFORM 21/04/21 Neutral 09/09/19 4523.0p


Airline stocks are early cyclical and should outperform in periods of margin expansion. We favour LCCs but relative performance will be nuanced. With market capacity down >10% this summer and geographical bias to Ireland/UK, we favour Ryanair (PT increased to €19) and easyJet (‘Outperform’ from ‘Neutral’, PT £7.2). Of the networks, Lufthansa’s balance sheet is strongest, with cargo promising and Lufthansa Technik undervalued (‘Outperform’ from ‘Underperform’, PT €8m). Demand recovery could be dramatic, but airlines are still sensitive to geopolitical events, seven-year-high oil prices and rising carbon costs.

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Jan 24 2022, 06:45 GMT