Aegean Airlines: on the beach! (upgraded to BUY)
Aegean’s pre-bookings indicate a strong summer season ahead. As the number of COVID-19 cases continues to decline in Europe, and restrictions have been eased across the continent, it seems as if everyone is heading to the beach. The number of tourists visiting Greece during summer 2022E seems likely to match the 2019 levels. Aegean’s competitors are also allocating significant capacity to Med destinations, and we were expecting this to weigh on fares. So far, this does not seem to be the case, however. Aegean’s pre-bookings seem to indicate ticket prices c.10% above pre-pandemic levels. Combined with the improved utilisation of assets and recovering load factors, this could offset the very high fuel costs, as Aegean is partly (47%) hedged for the year. If momentum remains strong throughout the summer, we see a good chance that Aegean could end the year in the black, even if oil remains at around USD 120/bbl. We upgrade the stock to a BUY, set our new 12M price target (PT) at EUR 6.5/share. The positive headlines on tourist numbers and booking trends could drive a re-rating of the stock in the coming weeks and months, we believe.Aegean Airlines is an airline carrier based in Greece. Co. is engaged in aviation transportation, providing services that concern the transportation of passengers and commodities in the sector of public aviation transportation inside and outside Greece, conducting scheduled and unscheduled flights. Co. provides full service, premium quality short and medium haul services. Co. maintains a network of 145 destinations, 111 international in 45 countries and 34 domestic destinations. Co. is a member of global airline network, the Star Alliance network.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.