Heathrow reports the busiest month since March 2020: Focus on 5 FTSE aviation stocks

Summary

  • London’s busiest airport Heathrow reported stronger July passenger numbers, reaching 1.5 million and making it the busiest month since March 2020.
  • Passenger numbers were 74 per cent above July 2020 figures, but still remained about 80 per cent below the pre-pandemic levels due to ongoing travel restrictions.

UK’s major airport hub London Heathrow Airport announced it passengers’ numbers soared for the month of July to over 1.5 million, making it’s the busiest month for the airport since the pandemic related lockdowns came into place in March 2020.

This year’s July figures were 74 per cent higher from July 2020, as the UK allowed double jabbed passengers to travel to amber listed countries and not having to quarantine upon re-entering the UK.

However, passenger numbers were still 80 per cent below the pre pandemic levels in 2019, due to continuing travel restrictions in the sector.

Let us take a closer look at 5 FTSE listed airline stocks and see how they responded to the development:

  1. Ryanair Holdings Plc (LON: RYA)

Main market listed company Ryanair Holdings is an Ireland based ultra-low-cost airline. It announced recently to close its commercial base at London South end Airport from 1 November due to the pandemic.

The company’s traffic has however increased to 9.3 million in July compared to 4.4 million in July 2020, following an ease in restrictions.

The group also reported that it operated 61,000 flights last month and had a load factor of 80 per cent in July.

(Image Source: Refinitiv)

Ryanair’s shares were trading at EUR 16.52, down by 0.63 per cent as of 11 August at 13:52 PM GMT+1, while the travel sector index was trading at 8,583.70, up by 0.30 per cent.

Ryanair’s market cap stands at £15,793.04 million, and its one-year return was at 39.35 per cent as of 11 August.

Also Read: Lens on Rolls Royce, EasyJet and Wizz Air as UK’s green list for travel expands 

  1. International Consolidated Airlines Group S.A (LON: IAG)

British Airways owner, International Consolidated Airlines, is a global airline holding company. The group announced its H1 2021 results, reporting passenger revenue was down by 72.3 per cent to EUR 1,141 million, from EUR 4,113 million in H1 2020.

Q2 2021 passenger capacity was 21.9 per cent of its pre-pandemic levels in FY 2019 as the company was still affected by covid-19 related restrictions.

(Image Source: Refinitiv)

IAG’s shares were trading at GBX 170.68, up by 2.29 per cent as of 11 August at 14:20 PM GMT+1, while the FTSE 100 index, which it is a part of, was trading at 7,207.36, up by 0.65 per cent.

IAG’s market cap stands at £ 8,277.71 million, and its one-year return was at 23.69 per cent as of 11 August.

Also Read: IAG shares tumble 8% even as Q2 loss shrinks

  1. Wizz Air Holdings Plc (LON: WIZZ)

FTSE 250 index constituent company Wizz Air is a Hungary based low-cost airline. The airline recently announced its passenger and carbon emission statistics, according to which its July booked passenger numbers rose by 62 per cent to 2,956,043 from 1,824,452 in July 2020.

Its carbon dioxide grams per passenger per kilometre (pax/km) in July was down by 20.3 per cent to 64.6 gm per pax/km from 81 gm per pax/km in July 2020.

(Image Source: Refinitiv)

Wizz’s shares were trading at GBX 5,140.00, up by 0.16 per cent as of 11 August at 14:34 PM GMT+1, while the FTSE 250 index, which it is a part of, was trading at 23,637.99, up by 0.28 per cent.

The company’s market cap stands at £ 5,288.07million, and its one-year return was at 48.64 per cent as of 11 August.

  1. Easyjet Plc (LON: EZJ)

Another FTSE 250 index listed firm Easyjet is a UK based European low-cost airline. The airline recently announced its Q3 2021 trading update, reporting cash burn in Q3 reduced to £55 million.

It expects its Q4 2021 capacity to reach about 60 per cent of its pre-pandemic levels in 2019. Q4 2021 capacity is forecasted to be 17 per cent higher than Q3 2021 levels.

(Image Source: Refinitiv)

Easyjet’s shares were trading at GBX 833.80, up by 1.26 per cent as of 11 August at 14:34 PM GMT+1.

The company’s market cap stands at £3,760.88 million and its one-year return was at 38.22 per cent as of 11 August.

  1. JET2 Plc (LON: JET2)

FTSE AIM UK 50 index listed firm JET2 is the third largest airline in the UK. It recently announced its FY 2021 annual report, stating FY 2021 revenue dropped by 89 per cent to £395.4 million due to international travel restrictions.

It also reported an operating loss of £336.1 million, from a profit of £184.6 million in FY 2020.

(Image Source: Refinitiv)

JET2’s shares were trading at GBX 1,277.00, down by 0.23 per cent as of 11 August at 14:52 PM GMT+1.

The company’s market cap stands at £ 2,747.13 million, and its one-year return was at 70.54 per cent as of 11 August.

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