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Highlights
- Ryanair has started off an airline price war, which might be good news for international travelers.
- Bookings are expected to rise due to the easing of travel restrictions by the UK Government and pent-up demand.
- Last week, easyJet CEO Johan Lundgren stated that the prospect for the upcoming summer looks bright due to high pent-up demand.
Irish budget carrier Ryanair has called itself a green airline as it vowed to raise its flight numbers and started a price war with its competitors like BA. In its third quarter for the current financial year, the company reported a loss of €96 million euro, which was way less than the €321-million deficit in the same period last year but was still higher than what it had anticipated. Ryanair blamed the Omicron variant for the low traffic as passenger numbers were below the expected level of 11 million last month.
The green airline got delisted from the London Stock Exchange in December 2021. Its last day of trading on the LSE was December 17. It has another listing on Euronext Dublin. The low-cost carrier said that its financial future is highly unpredictable, but it intends to operate more flights this summer than in 2021.
There would be significant price competition as prices would be reduced to attract customers. The price war could prove to be beneficial for people planning to travel to foreign destinations but the shareholders in the airlines might not be as happy.
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As the UK Government is easing the travel restrictions, the number of bookings is rapidly rising, according to easyJet. Last week, easyJet CEO Johan Lundgren stated that the prospect for the upcoming summer looks bright due to high pent-up demand. Euro beach destinations would likely be in focus as Britons are eager for a foreign break. New slots at Gatwick have been bought by Wizz Air.
Owner of British airways, International Consolidated Airlines, has also suffered from losses during the pandemic. But it may also do well with the easing of travel restraints in the UK and may benefit from the huge pent-up demand.
Let’s take a look at the three major UK airline stocks and their performance.
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easyJet plc (LON: EZJ)
The market cap of the top UK-based international budget airline group, easyJet plc, stands at £4,689.05 million and the FTSE250-listed company has provided a negative return of -16.03% to its shareholders in the last one year as of 31 January 2022. easyJet plc’s shares closed at GBX 618.60, down by 0.07%, on 31 January 2022.
Wizz Air Holdings PLC (LON: WIZZ)
The market cap of the Swiss-based airline conglomerate, Wizz Air Holdings PLC, stands at £4,277.49 million and the FTSE250-listed company has provided a negative return of -7.05% to its shareholders in the last one year as of 31 January 2022. Wizz Air Holdings plc’s shares were trading at GBX 4,035.00, down by 2.77%, on 31 January 2022.
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International Consolidated Airlines Group S.A. (LON: IAG)
The market cap of the Anglo-Spanish international airline holding enterprise, International Consolidated Airlines Group S.A., stands at £7,653.34 million and the FTSE100-listed company has provided a return of 9.93% to its shareholders in the last one year as of 31 January 2022. International Consolidated Airlines Group S.A.’s shares closed at GBX 156.00, up by 1.13%, on 31 January 2022.
