5 must buy high-flying FTSE aviation stocks

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5 must buy high-flying FTSE aviation stocks

 5 must buy high-flying FTSE aviation stocks
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Highlights

  • The UK government has taken considerable steps to ease travel restrictions after a successful roll out of vaccination program.
  • Ease in travel restrictions with the US and other countries will help boost the domestic Aviation sector.

The UK government has taken considerable steps to ease the travel restrictions following the decline in cases and successful roll out of vaccination program. The UK government at present allows the fully vaccinated US citizens to travel without the need to quarantine. Ease in travel restrictions with the US and other countries will help boost the Aviation sector in the United Kingdom.

The US airlines JetBlue recently started nonstop service between New York and London, which raised the hopes amongst the travellers that complete set of travel restriction will be lifted soon between two countries.

Let us look at FTSE listed Aviation stock that could be the potential beneficiary after ease in lockdown restrictions:

International Consolidated Airlines Group (LON: IAG)

The company along with its subsidiary operates the passenger and cargo transportation service. It owns and operates the British Airways and other airlines companies across Europe.

The company operated a record number of 1306 cargo-only flights during the first quarter of 2021, which led to record cargo revenue of €350 million. Due to Covid-19 restrictions, the passenger traffic was impacted in the first quarter, and stood at just 19.6% of 2019 levels. The company is hopeful that ease in restrictions and lifting of travel ban globally will revive the passenger traffic.

IAG Group shares trade at GBX 161.92, down by 1.54% on 17 August at 8.45 GMT+1, with a market cap of £8158.65 million.

EasyJet plc (LON: EZJ)

UK-based airline company operates through multiple subsidiary companies across European countries. The company provides the domestic and international services on more than 1000 routes across 30 countries.

The company carried close to 3 million passengers, which represent 17% of Q3 2019 capacity during the quarter ended 30 June 2021. The total group revenue was at £212.9 million (2020 Revenue: £7.2 million). During the upcoming quarter, the company’s management expects to fly up to 60% of the fourth quarter 2019 capacity.

Shares of Ryanair Holdings Plc currently trades at GBX 800, down by 0.67% on 17 August at 8.45 GMT+1, with a market cap of £3678.6 million.

JET2 Plc (LON: JET2)

The company operates the holiday flights to various destination globally. It also provides the charter flights, holiday package and passenger aircraft through a fleet of 100 aircrafts. 

The company operated its airlines services at half capacity during the last year, and its aircraft remained grounded for the total of 29 weeks during the financial year ended 31 March 2021. As a result, the airlines saw a 91% decrease in passenger traffic. The company is optimistic that package holiday bookings, which contribute a major part of company’s revenue, will see revival due to pent-up travel demand during the summer season.

JET2 Plc shares trade at GBX 1224.50, down by 1.88% on 17 August at 8.45 GMT+1, with a market cap of £2678.45 million.

Ryanair Holdings Plc (LON: RYA)

The company operates the low cost airline service in the UK and other European countries.

The company reported €371 million in revenue and a net loss of €273 million during the first quarter ended 30 June 2021. The airlines operated 61,000 flights to different destinations and carried 9.3 million passengers in the July 2021, which indicates a revival in passenger traffic but still remains below the pre-pandemic levels.

Shares of Ryanair Holdings Plc currently trades at EUR 15.96, down by 0.78% on 17 August at 8.45 GMT+1 with a market cap of £15630.4 million.

Also Read: Airline stocks and the new quarantine relaxations by the UK DoT

Wizz Air Holdings Plc (LON: WIZZ)

The airlines provide the passenger services on different point-to-point routes. The company operates a fleet of 142 aircraft and currently serves in 44 countries.

The airlines reported €199 million in revenue for the three months ended 30 June 2021. The company saw a revival in passenger traffic and carried close to 2.9 million passengers at a load factor of 79% in the July month.

Wizz Air Holdings Plc shares trade at GBX 4960, down by 0.80% on 17 August at 8.45 GMT+1 with a market cap of £5152 million.

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