IAG: air freight cushions risks around airline pricing power 2024

IAG new

Morgan Stanley | Capacity growth in long-haul travel poses risks around 2024 pricing power for flag carriers, especially those with exposure to the North Atlantic. However, Conor Dwyer (analyst), notes that rising air freight yields (+25% in December to 1.9x 2019 levels), as a result of disruptions in container shipping, should limit the impact. This dynamic is more favourable for Air France and Lufthansa, more exposed to air freight than IAG, which is why Lufthansa rises to Equalweight and IAG falls, becoming a relative UW.


IAG, FROM EQUAL TO UNDERWEIGHT, from €2.20 to €2.05

AIR FRANCE, EQUALWEIGHT, from €14 to €15

ATT00003 2

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.