Prolonged summer; period of margin expansion

  • 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 OUTPERFORM 17/05/23 Neutral 12/01/23 152c
easyJet OUTPERFORM 24/01/22 Neutral 14/07/21 494p
IAG OUTPERFORM 27/09/22 Neutral 12/08/20 154.3p
Lufthansa OUTPERFORM 24/01/22 Underperform 08/06/20 917c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 1188nok
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 1579c
Wizz Air Holdings OUTPERFORM 12/01/23 Neutral 25/04/22 3025.0p


Demand (and the desire for ‘experiences’) is running ahead of multi-year supply constraints. We believe we are in a period of margin expansion even if/when ‘economics’ moderate yields. Valuations provide entry points for all the main airline stocks – whether long-term growth plays or mid-cycle recovery stories.

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May 17 2023, 06:45 IST/BST