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Mar 7 2025, 10:00 GMT
Airlines
Growth and value plays in aviation supply chain
- Sectors : Airlines
- Companies : Lufthansa | Jet2 plc | 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 | 17/05/23 | Neutral | 12/01/23 | 1216c |
| Wizz Air Holdings | NEUTRAL | 17/01/24 | Outperform | 12/01/23 | 1723.0p |
| easyJet | NEUTRAL | 16/01/25 | Outperform | 24/01/22 | 505p |
| Norwegian Air | NEUTRAL | 01/09/15 | Underperform | 22/01/15 | 1185nok |
| Lufthansa | OUTPERFORM | 24/01/22 | Underperform | 08/06/20 | 806c |
| IAG | NEUTRAL | 17/01/24 | Outperform | 27/09/22 | 324.0p |
| Jet2 plc | OUTPERFORM | 05/06/24 | N/A | N/A | 1379p |
| Ryanair Holdings | OUTPERFORM | 07/12/09 | Neutral | 02/11/09 | 2085c |
DAVY VIEW
Aviation is a growth industry, and we see air travel demand enduring into 2025. The sector is clearly subject to the vagaries of geopolitics, but travel spend (in some segments) is now viewed as essential. We think that industry supply issues have troughed but will only slowly improve. Our industry supply models suggest tepid growth into 2025. We expect industry margins to expand. Supply chain delays will result in airlines tailoring their networks and staffing to realistic growth assumptions, thus limiting cost over-runs (see our January 16th report for further detail). As ever, the summer season will be key. We attach our latest industry presentation here. We will further explore these themes at our London Transport conference, which will take place on June 26th at the Davy office in Gresham St. Paul’s – more details to follow.
