Future price13 Apr 2023 09:38
Credit Reuters
BofA Global Research expects European network airlines to report slower Q1 yields given the typically corporate season, while low-cost carriers' ticket fares are likely to improve
* Jet fuel prices are down 17% YTD, but airlines are unlikely to pass on these savings to fares given pent up travel demand and potential capacity constraints, the brokerage says
* It raises 2023 EBIT estimates by 14% on average for the sector, 3% ahead of consensus
* BofA notes intra-Europe ticket fares have continued to improve this year and sees scope for further growth into the summer as short haul prices catch up with international
* European airlines' shares are up 31% YTD on average, outperforming the STOXX 600 index and U.S. peers on better-than-expected demand and higher earnings estimates, it adds
* It says IAG has biggest upside potential to price objective, while Air France KLM has biggest downside to Q1 consensus estimates
(Reporting by Matteo Allievi) ((Matteo.allievi@thomsonreuters.com)