Most airline stocks trail the market, says AltIndex.com

BTN News
Tuesday, 25 June 2024

Although the airline industry aims for a new record with nearly five billion scheduled flights and almost US$1 trillion in revenue in 2024, most airline stocks still trail the market.


According to data analysis by AltIndex.com, six out of the 10 largest airline companies by market cap have seen their stock values drop year to date.
Air China and Ryanair are the biggest losers, with 19 and 14 per cent stock value drops year to date.

Although the global demand for flights is stronger than ever, investors are still concerned about the airline companies` performance, with many losing billions of dollars in stock value.

Although Ryanair, the world's second-largest airline company by market cap, is good at generating profits and cash, the geopolitical and industry uncertainties in the outlook over the coming year, including delays to its B737 MAX deliveries, have caused the company's stock price to drop.

In the fiscal year ended March 2024, Ryanair reported its highest-ever net profit of EUR1.92 billion and its highest-ever passenger count of 184 million, 24 per cent more than in FY2020, the last pre-pandemic year. 

Its operating margin improved to 15.3 per cent, the highest since 2018, making it the most profitable among Europe's leading airline groups. However, that didn't stop the company from losing US$4.5 billion in stock value year to date (YTD). In January, Ryanair's market cap amounted to US$30.4 billion; but last week, it was US$25.9 billion, showing a 14 per cent drop in six months.

Air China saw an even bigger decline, with its stock value plunging YTD by 19 per cent. Although the company's financial results for 2024 also showed significant growth and recovery from previous years and a notable increase in passenger and cargo traffic, its stock value has fallen by US$2 billion over the past six months.

Two other major Chinese airline companies, Chinese Southern Airlines and Chinese Eastern Airlines, have also seen their stock values decline, falling by roughly half a billion dollars in the first half of the year. 
 
The US's Southwest Airlines is also on the list of losers, with a US$300 million stock value drop YTD. Statistics show German Lufthansa's stock value has dropped most in 2024, plunging by almost 30 per cent.

InterGlobe Aviation (Indigo) and Turkish Airlines are the biggest winners in the 'top10 club'.

The parent company of IndiGo reported strong financial results in FY 2024, marking a significant turnaround from the previous year. After ending 2023 with a US$370 million loss, InterGlobe Aviation reported a net income of close to one billion dollars in FY 2024 and carried 27.5 million passengers, a 23.4 per cent increase. The company's strong financial results helped it grow its stock value by 45 per cent in the past six months, the highest increase among the top 10 airline companies. Last week, InterGlobe's market cap was close to US$20 billion, up from US$13.7 billion in January.

Turkish Airlines was the second-best performer in the year's first half. The company maintained a robust performance in 2024, with notable growth in passenger numbers, Available Seat Kilometres (ASKs) and cargo operations caused its stock value to jump by 23 per cent or US$2.5 billion since the beginning of the year.   

Most airline stocks trail the market, says AltIndex.com

BTN News
Tuesday, 25 June 2024

Although the airline industry aims for a new record with nearly five billion scheduled flights and almost US$1 trillion in revenue in 2024, most airline stocks still trail the market.


According to data analysis by AltIndex.com, six out of the 10 largest airline companies by market cap have seen their stock values drop year to date.
Air China and Ryanair are the biggest losers, with 19 and 14 per cent stock value drops year to date.

Although the global demand for flights is stronger than ever, investors are still concerned about the airline companies` performance, with many losing billions of dollars in stock value.

Although Ryanair, the world's second-largest airline company by market cap, is good at generating profits and cash, the geopolitical and industry uncertainties in the outlook over the coming year, including delays to its B737 MAX deliveries, have caused the company's stock price to drop.

In the fiscal year ended March 2024, Ryanair reported its highest-ever net profit of EUR1.92 billion and its highest-ever passenger count of 184 million, 24 per cent more than in FY2020, the last pre-pandemic year. 

Its operating margin improved to 15.3 per cent, the highest since 2018, making it the most profitable among Europe's leading airline groups. However, that didn't stop the company from losing US$4.5 billion in stock value year to date (YTD). In January, Ryanair's market cap amounted to US$30.4 billion; but last week, it was US$25.9 billion, showing a 14 per cent drop in six months.

Air China saw an even bigger decline, with its stock value plunging YTD by 19 per cent. Although the company's financial results for 2024 also showed significant growth and recovery from previous years and a notable increase in passenger and cargo traffic, its stock value has fallen by US$2 billion over the past six months.

Two other major Chinese airline companies, Chinese Southern Airlines and Chinese Eastern Airlines, have also seen their stock values decline, falling by roughly half a billion dollars in the first half of the year. 
 
The US's Southwest Airlines is also on the list of losers, with a US$300 million stock value drop YTD. Statistics show German Lufthansa's stock value has dropped most in 2024, plunging by almost 30 per cent.

InterGlobe Aviation (Indigo) and Turkish Airlines are the biggest winners in the 'top10 club'.

The parent company of IndiGo reported strong financial results in FY 2024, marking a significant turnaround from the previous year. After ending 2023 with a US$370 million loss, InterGlobe Aviation reported a net income of close to one billion dollars in FY 2024 and carried 27.5 million passengers, a 23.4 per cent increase. The company's strong financial results helped it grow its stock value by 45 per cent in the past six months, the highest increase among the top 10 airline companies. Last week, InterGlobe's market cap was close to US$20 billion, up from US$13.7 billion in January.

Turkish Airlines was the second-best performer in the year's first half. The company maintained a robust performance in 2024, with notable growth in passenger numbers, Available Seat Kilometres (ASKs) and cargo operations caused its stock value to jump by 23 per cent or US$2.5 billion since the beginning of the year.