Airlines

Who Dares Wins

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

Ratings

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

DAVY VIEW

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.

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Sep 9 2019, 06:30 IST/BST

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