Airlines - Uneven road to recovery – dawn coming but post bleak winter

Davy Research
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The presentation attached to this thought piece contains our latest sector data covering forecasts, capital structures and long-term aircraft demand/supply. Discussion within the airline space continues to revolve around the key themes of preserving cash, industry measures to restore confidence in travel, corporate travel, unit revenue, market consolidation and cost restructurings. We expect a smaller, more concentrated industry post-crisis and certain airlines – Ryanair, Wizz – to have gained market share. Only a few airlines will avoid long-term equity impairment. Indeed, only Southwest, Ryanair, Wizz and easyJet are rated investment grade. The stop/start nature of government travel restrictions points to a shake-out before next summer.