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Sep 9 2019, 06:30 IST/BST
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.
Sep 9 2019, 06:30 IST/BST