Strong general falls in the airline sector on Monday due to the spread of the coronavirus in Italy. According to Morgan Stanley data, 70-100% of the European airlines profits are made in the period from April to September, so a fall in demand or flight cancellations can have a strong negative impact.
Renta 4 | Reservations for the January / April period are + 1% higher than those of a year ago. This means positive news for the sector and mainly for European companies
BOfAML | Growth has started to improve and macro uncertainty is fading, but much of the good news is already priced into markets. We remain positive on European equities, but only see a further 5% upside to 425 on the Stoxx 600 by March.
BOfAML | We modestly update our forecasts reflecting fuel prices and monthly traffic data reports. European airlines in our coverage have reported 6.5% ASK growth on average in 3Q19 and we look for 3.8% in 4Q19. We expect RASK recovery with flat unit revenues in 3Q19 on average and 1.7% yoy improvement in 4Q19.
MADRID | By Jorge Chamizo via Capitalmadrid | Traffic improved slightly this year, along with a strong supply restriction. Ryanair also suffers some difficulties reducing its profit by 21 percent in its first fiscal quarter.