Airlines are a "buy"

That’s a huge amount in the same industry!

If (hope not) the air line industry crashes aren’t you taking a massive risk?

EasyJet was at ~1500 Feb last year, now ~1000, down 30%
Ryanair is only a touch higher, ~ 3.5%
Wizz, I agree, is 20% higher.

I guess these airlines stand to recover the most quickly as short haul flights ramp up. They were pushed way down on the uncertainty of when flights would resume and now we’re beginning to get some idea (specially helped as that idea, at least for the UK has moved from September to July, so doesn’t miss the summer holidays).

easyJet at its highs in Feb 2020 yes not at it’s lows which were consistently around 1000 in normal climate…

Who says Portugal, Greece, Italy will allow tourists in? Why would you want to go to a ghost town?

So many hurdles.

Well i am not looking at it being short-termist - medium long term it will be a 3-4x return and thats fine by me

Or a panam -100%, who knows

I’ve gone for Airbus :ok_hand:

been banging on about this too David, and I invested way back when they were low too.

The low stock prices were always a good buy in my mind, air travel would always come back.

Unfortunately, not everyone had the money during these troubling times to invest.

nevertheless, well played David, and hats off to you, enjoy it!

1 Like

None are yet, thats why i invested at their lowest point

I avoided Wizz due to the risk of small budgets going under, after monarch, Jet2 types have been on the ropes

Could be a good strategy with a big up trend but quite risky because you must hope of no any other lockdown is on the way.
In a portafoglio could be nice have some hospitality and Airlines stocks anyway.

1 Like

Greece will allow non vaccinated tourists , but will require a negative test and quarantine, but will also accept (first that proposed it) a vaccination certificate with which no restrictions will apply. Carnival already planned cruises between Israel , Cyprus and Greece.

1 Like

My worry with airlines is not so much the tourism market, which will surely bounce back, but the business aspect. I think I’m right in saying it makes up a bigger proportion of revenues and I imagine lots of businesses will continue to favour Zoom/Teams over flights for the longer term.

Yes i agree that some carriers will be impacted for this for sure, which is why i have weighed heavier on tourist carriers and lighter on mixed use carriers. However i think a lot of businesses mainly operate in country and so remote working wont impact flight traffic s much as we think it will. You will always have execs and sales people flying for a face to face. There will be an overall impavct though i agree, just maybe not as much as the negative ones beleive as most are getting fed up with zoom culture already. This will also be offset by the overall global growth in air travel anyways over time. I think the key here is to buy low as we have, hold until there is a “new norm” and the main recovery is over, then cash out before the realisation of long term lost revenue from never returning business travellers - or stay in and hold very long term for growth to off set. I will be cashing out medium term as I want a new flash car from this before I have to drive electric from 2025!

2 Likes

IMO wizz was the best buy during the crash I had some and sold at 50pc gain. They’re taking up other airlines exclusive airport rights and theyre short haul Europe.

Have we considered that the share prices may take a while if they ever reach the same highs again? I mean this by the way of dilution that took place to help shore up the airlines balance sheets so they could survive.

1 Like

Yes, I have said all along this won’t be a quick buck, it’s medium to long term. So ok profit after 12mths and decent money in 2-3yrs. I could have left this portfolios cash in the bank 3mths ago, instead set up an airline pot (amoungst others existing) and instead of 0.5% interest I am now up 35%

I work in the travel industry, and I have a portfolio of Airlines, Cruise lines, Airbus, Boeing and a couple of airports. on average up 30% and I unfortunately only got into investing in January. Having said that I got in at a fairly decent low point and I anticipate a return to Jan 2020 levels before potentially cashing out by next year.

Lufthansa’s ER was encouraging that the airline will streamline its planes, but its the poorest performer of the lot.

There is a huge pent up demand in travel, but it will take well into Q4 before that takes on intercontinentally. Domestic (EU or US)travel will boom, with some travel to mid-short destinations in Q3, but I do not anticipate travel to return to 2019 levels until 2023.

1 Like

Yes totally agree. I went in £50k, just gone past £20k upside, will wait until it hits £90k and then take £40k out for a Caterham and leave the original £50k in to grow across '22 and '23

Caterham sounds brilliant - ever thought about the Westfield Hayabusa?

Yes but i always think the big 7 is missing from the front ! :rofl:

1 Like