Airlines & Other Transport

Uneven road to recovery – dawn coming but post bleak winter

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

Ratings

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 367c
easyJet OUTPERFORM 05/08/20 Neutral 20/06/18 590p
IAG NEUTRAL 12/08/20 Outperform 31/08/18 134.3p
Lufthansa UNDERPERFORM 08/06/20 Neutral 30/10/18 867c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 105nok
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 1211c
Wizz Air Holdings NEUTRAL 09/09/19 Outperform 20/06/18 3502.0p

DAVY VIEW

The presentation attached to this thought piece contains our latest sector data covering forecasts, capital structures and long-term aircraft demand/supply. Discussion within the airline space continues to revolve around the key themes of preserving cash, industry measures to restore confidence in travel, corporate travel, unit revenue, market consolidation and cost restructurings. We expect a smaller, more concentrated industry post-crisis and certain airlines – Ryanair, Wizz – to have gained market share. Only a few airlines will avoid long-term equity impairment. Indeed, only Southwest, Ryanair, Wizz and easyJet are rated investment grade. The stop/start nature of government travel restrictions points to a shake-out before next summer.

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Sep 16 2020, 06:30 IST/BST

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