Airlines & Other Transport

Who Dares Wins

  • Sectors : Airlines & Other Transport
  • Companies : easyJet | IAG | Norwegian Air | Ryanair Holdings | Wizz Air Holdings | Air France KLM | Lufthansa


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Air France KLM OUTPERFORM 21/01/19 Neutral 22/01/18 985c
easyJet NEUTRAL 20/06/18 Outperform 12/12/17 940p
IAG OUTPERFORM 31/08/18 Neutral 22/08/17 428.5p
Lufthansa NEUTRAL 30/10/18 Outperform 27/01/17 1404c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 3252nok
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 945c
Wizz Air Holdings NEUTRAL 09/09/19 Outperform 20/06/18 3567.0p


It may not feel like it, but the structural underpinnings of the European airline sector continue to improve. Those that deliver, i.e. the five leading airlines, now control over 60% of intra-European capacity and almost 90% of profits. The ‘rest’, except for Wizz, are characterised by a long tail and are struggling. We think industry consolidation is likely to continue and argue that even easyJet could be a target over the medium term. Meanwhile, valuations have collapsed, with Ryanair trading near the bottom of its range against fleet value and IAG <4x P/E. Both are structural winners.

Download full report with analyst certification and important disclosures

Sep 9 2019, 06:30 IST/BST