Airlines are a "buy"

Not sure about anyone else but I am excited by the last week of recovery in Airline stocks.

I bought in £50k 3mths ago and spread across AA, IAG, Easyjet, Boeing, Airbus, Tui, Ryanair, Air France, KLM, and recently ground handlers etc like Menzies.

Vaccine announcements have been up and down for months but this week with the UK, US and other major EU coountries all marking out a road to recovery, holiday bookings have rocketed and the stocks are up 17-45% (29% average).

All of the above still sit at 35-20% of pre-covid values, and so have a lot of gain to take advantage of.

Happy hunting everyone!

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IAG’s full year results on Friday will make interesting reading I suspect…

Sure, You can say that’s for most consumer cyclical, With pent-up travels, it’s going to be interesting. I have some exposure to airlines, but not all in at the moment.

Even with the restrictions lifted, other Countries are not going to let Brits in willy nilly especially with the new Brexit Rules of needing extra documentation.

I feel that people are getting ahead of themselves about the lifting of Holiday restrictions.

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I think the optimism is less about the brits themselves and more about the industry worldwide getting up and running again.

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I agree, my post was about UK and two major continents that all share free travel normally whether vacation or business related those markets will bounce back first, and faster than Russia, Africa or India

It’s not a “Brit” thing, half my investments are EU or US. It’s travel between 3 key markets who will bounce back harder and faster than others. And for the record there are no extra papers for UK people travelling to EU and back. Maybe extra checks on good but not people. And even if there are extra checks, it’s only like flying to a non eu country like, Dubai, Morocco, Switzerland, Norway, turkey, USA, Hong Kong. Stamp and go! No hardship is it!

I was talking about the UK Airline Stocks though not the overall Airline Industry and there will be additional checks since the EU Insurance Cards don’t work anymore.

There maybe an agreement to ease the process but it is still more paperwork for non-EU members.

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What do you mean by “additional checks since the EU Insurance Cards don’t work anymore.”?
Are you referring to the E111/European Health Insurance Cards (EHIC)?

Airlines are a bubble take your profit. How can airlines be higher than pre-covid with their cash burn, seriously can’t people see this…They’re already priced in post covid and will need to correct before returning to the same trajectory.

GLA

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I agree, how can they be making more money all of a sudden? Flights will be lower than normal for a summer holiday season as things are not yet back to normal, and even if they were they haven’t suddenly increased the amount of aircraft, airports or flights.

All this before we acknowledge the fact that they haven’t made a penny for over a year.

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Totally agree guys, there balance sheets do not look great at all. But consumer confidence, increased bookings, usage of banked vouchers, leaner overheads and government bailouts all means they will recover. Not short term I know, but they are out of the lowest dip and regardless of how much they return to normal it’s only upwards from here as they were priced in Covid at 15-25% of pre cv19, anything is upside. Pre lockdown lifting they stabilised at 15% up and now they are over 30%. Just sharing my experience

Recover doesn’t mean growth or increased profit. It means exactly that, recover. Only one who will do well is Wizz but this already priced in. iAG lost 7bn up 2.5%, same people buying this the ones that are against mr.potato head?

Let’s not forget inflation and the cost of flying is going to rocket up with oil prices :stuck_out_tongue_winking_eye:

Buy the rumour, sell the news.

I’d rather just buy off my own research. I know what you mean though.

Agree, but that’s why they’re rising (and/or will rise).

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Sheep, herd mentality, lemmings.

Thats what the stock market is, those lemmings are the demand

Which airlines are higher than pre-covid?

Wizzair and ryanair, easyJet to some extent is on an average par…