Top 5 aviation shares to buy as airlines seek lifting of travel curbs

4 min read | September 14, 2021 08:09 AM BST | By Rishika Raina

Highlights 

  • The aviation industry is demanding to scrap travel restrictions for fully vaccinated people.
  • Aviation has been among the hardest-hit industries during the pandemic.
  • UK aviation sector is lagging behind Europe in terms of airline traffic.

Airlines in the UK and the Airport Operators Association (AOA) have stated in a letter to the Transport Secretary that the recovery of the UK aviation sector is lagging behind in comparison to the rest of Europe. This comes before the planned review of the travel traffic light system to be carried out by the UK Government. As per recent reports, the “green” and “amber” lists are all set to be discarded.

Alternately, travelling without any restrictions would be possible for people who have received two doses of a Covid-19 vaccine, but only to countries with similar vaccination rates. Although, a “red list” of the countries with lower vaccination rates will persist.

ALSO READ: 5 must buy high-flying FTSE aviation stocks

According to the Eurocontrol data, the airline traffic in the UK is around 50% of the pre-Covid levels, which is less than Europe’s overall 70%. Meanwhile, 60% of the workers in the UK aviation industry are on the furlough scheme, which is the highest among all industries in the UK. Aviation has been one of the most hard-hit industries during the pandemic, and thus the industry is demanding to remove the travel restrictions for fully vaccinated people to overcome the impact of the pandemic and bounce back to normalcy.

ALSO READ: TUI cancels holidays: Is this FTSE 250 travel stock still a buy?

Let’s take a look at some of the top aviation stocks in the UK.

Wizz Air Holdings PLC (LON: WIZZ)

Switzerland-based airline company, Wizz Air Holdings PLC, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes and cargo air transportation services. With a market capitalisation of £4,864.57 million, the company is listed on the London Stock Exchange since 2015 and is also a constituent of the FTSE 250 index. Its Earnings per share is -6.73 and its 1-year return is 38.96%. Its close price as of 13 September 2021 was GBX 4,806.00.

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

Headquartered in London, International Consolidated Airlines Group S.A. is an Anglo-Spanish multinational airline holding company which provides passenger and cargo transportation services. With a market capitalisation of £7,209.24 million, the company is listed on the London Stock Exchange since 2011 and is also a constituent of the FTSE 100 index. Its Earnings per share is -1.96 and its 1-year return is 11.60%. Its close price as of 13 September 2021 was GBX 148.30.

easyJet plc (LON: EZJ)

Headquartered in Luton, easyJet plc is a UK-based multinational low-cost airline group. Along with its affiliate airlines, it operates domestic and international scheduled services in over 30 countries. With a market capitalisation of £3,109.55 million, the company is listed on the London Stock Exchange since 2000 and is also a constituent of the FTSE 250 index. Its Earnings per share is -2.65 and its 1-year return is 1.72%. Its close price as of 13 September 2021 was GBX 590.00.

ALSO READ: Airline stocks and the new quarantine relaxations by the UK DoT

Jet2 PLC (LON: JET2)

Headquartered in Leeds, Jet2 PLC is a UK-based multinational airline company which provides licensed packages for leisure flights and stays at a multitude of vacation destinations. Its award-winning airline, Jet2.com, specialises in friendly low fares. With a market capitalisation of £2,296.43 million, the company is listed on the London Stock Exchange since 2005 and is also a constituent of the FTSE AIM UK 50 index. It has given a return of 56.90% in a year. Its close price as of 13 September 2021 was GBX 1,130.50.

Ryanair Holdings plc (LON: RYA)

Headquartered in Swords, Ireland, Ryanair Holdings plc is an Irish ultra-low-cost carrier which provides scheduled-passenger airline services. It is the parent company of Buzz, Lauda and Malta Air, which makes it the largest airline group in Europe. With a significantly huge market capitalisation of £15,181.79 million, the company is listed on the London Stock Exchange since 1998. It has given a return of 33.40% in a year. Its close price as of 13 September 2021 was GBX 15.90.


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