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Mar 11 2022, 13:00 GMT
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 | 379c |
easyJet | OUTPERFORM | 24/01/22 | Neutral | 14/07/21 | 508p |
IAG | NEUTRAL | 12/08/20 | Outperform | 31/08/18 | 138.7p |
Lufthansa | OUTPERFORM | 24/01/22 | Underperform | 08/06/20 | 706c |
Norwegian Air | NEUTRAL | 01/09/15 | Underperform | 22/01/15 | 1043nok |
Ryanair Holdings | OUTPERFORM | 07/12/09 | Neutral | 02/11/09 | 1377c |
Wizz Air Holdings | UNDERPERFORM | 21/04/21 | Neutral | 09/09/19 | 3011.0p |
Airlines stocks have been on a wild ride since the Ukraine invasion, as has the oil price. Post-earnings season we have adjusted fuel upwards from $775 to $975 per metric tonne for the network airlines. Clearly there are a range of issues – overflight re-routing to Asia, elongated supply chains in cargo, demand/supply in the two main markets this year (Intra-Europe, Atlantic). US markets have taken a sanguine enough view of the conflict compared with Gulf War times, but European airlines are down anywhere from single digits to 35% in the case of Wizz. In fairness, all the major networks have restructured post-COVID. We favour Lufthansa (‘Outperform’) over the others given cargo exposure, optionality on Lufthansa Technik, the declining pension deficit and balance sheet strength.
Mar 11 2022, 13:00 GMT