Last checked at (Sharecast News) - Citi recommends investors tread more carefully in the European airlines sector given the changed landscape in the wake of the pandemic.
The recovery path for the various carriers could also vary.
On the plus side, the pandemic had forced companies to rationalise supply, which might result in greater pricing power in coming years, the broker added.
However, industry costs were facing structural headwinds including from environmental and route charges.
"Against this mixed backdrop, we believe investors should spread their wings across low cost and legacy carriers for winners," Citi said.
The analysts said that they preferred Ryanair and Wizz Air in the low cost segment and IAG among the legacy carriers.
Nevertheless, they did upgrade easyJet to 'neutral', arguing that it would benefit from the retrenchment of AF-KLM and Lufthansa, hence its 'sell' recommendation on shares of the latter two.
27 Nov 2022 21:30
Sunday newspaper round-up: Zero Covid, British Airways, Rolls Royce
(Sharecast News) - Protests against the government's zero-Covid strategy are spreading from Shanghai to other Chinese cities such as Guangzhou, Wuhan and Xi'an. Videos of the protests on social media, including some showing clashes with police and people chanting anti-government slogans, were taken down. In Urumqi, most of the city had been under lockdown for over three months, although lockdowns were lifted in some neighbourhoods on Saturday. China reported 39,506 cases of Covid-9 on Sunday, a record level, but small when compared to the levels recorded at the height of the pandemic in the West. - The Sunday Times
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