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Highlights
- After witnessing chaos at airports during summer, travellers may see smooth half-term getaways in the coming weeks.
- The airlines believe that they can carry out their operation without disruptions.
The holiday plans for many this summer were ruined as airlines decided to cancel thousands of flights. In fact, there was chaos regarding international flights during the whole summer. But the situation now seems to be improving, and airlines have expressed confidence that there will be a smooth getaway in the busiest weekend before Christmas.
According to reports, British Airways and EasyJet are confident of fulfilling the schedule of travellers when the number of passengers starts rising at the beginning of what many consider the October half-term holiday.
The first half of 2022 saw thousands of flight cancellations due to the staff shortage, leading to chaotic scenes at UK airports. London Heathrow does not expect the challenges to be resolved before the next summer. However, it also doesn't expect the passenger numbers to reach the 100,000 limits it has imposed on departures. Notably, this cap is set to be removed later this month.
Let us now look at some airline stocks on the London Stock Exchange and see how they've been performing in the current situation.
International Consolidated Airlines (LON:IAG)
The FTSE 100 listed company owns UK's flagship carrier British Airways (BA). The airline cut its flight schedule in the summer until the end of October. Holding a market cap of £5,638.83 million, the company has given a negative return of -26.92% to investors over the past 52 weeks. The EPS stands at 1.45, and the company's shares traded at GBX 4,377.00, down 4.08% as of 2:17 pm GMT+1 on 21 October.
EasyJet plc (LON:EZJ)
The budget airline has a market cap of £2,483.24 billion. The company plans to operate 900 flights a day from the UK. Both its 12-month and YTD returns are in the negative territory at -47.57% and -43.74%, respectively. The EPS is also negative at -1.59. EZJ shares were trading 2.90% lower at GBX 318.10 as of 2:21 pm GMT+1 on Friday.
Wizz Air Holdings plc (LON:WIZZ)
The Swiss-based carrier offers low-budget flights. It belongs to the FTSE 250 index, holding a market cap of £1,531.01 million. Both its year-to-date and 12-month returns are in the red, at -67.08% and -66.03%, respectively. The EPS is also negative at -6.33. As of 2:23 pm GMT+1 on 21 October, WIZZ shares were trading at GBX 1,423.00, down 4.05%.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
