WOOD Flash – EMEA airlines: 8M22 traffic, gains from strong summer uneven, attention turns towards winter
The robust recovery of demand for air travel and overall traffic has continued uninterrupted through the summer. IATA estimates that, in July, Europe-wide capacity trailed the 2019 level by a mere 16%. Additionally, since the second half of July and throughout August, delays and cancellations have been moderating gradually across Europe. Also, although load factors are trailing the 2019 levels by c.2ppts in Europe, pricing seems to be some 5-15% above the 2019 levels, for the major players. That said, the focus is now turning towards the winter. There is a growing concern that the combination of a weak macro and high energy and other costs could weigh on discretionary spending. With stretched budgets and a focus on alleviating the energy price crisis, the governments may have less appetite (and capacity) to bail the airlines out. As such, we see a risk that some of Europe’s small carriers could struggle to make it through the winter. Some of the small CEE flags seem particularly at risk, and we note the recent flight cancellations by Blue Air, whose bank accounts have been frozen by the Romanian government due to consumer protection concerns. This could be a boost for Wizz Air and Ryanair, in our view. Both Pegasus and Turkish Airlines are continuing to see stellar demand in the international segment, which seems likely to translate into exceptionally strong earnings in 2022E, despite the high fuel price environment.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.
Pegasus Hava Tasimaciligi is a low-cost airline group based in Turkey. Co. provides reasonably-priced transportation opportunities on point-to-point basis in short and medium range flight lines on its domestic and international network. Co. primarily provides transportation opportunities from its main hub in Istanbul Sabiha Gokcen International Airport, but also offers scheduled flights from other domestic hubs, primarily in Adana, Antalya and Izmir. Co.'s fleet is composed of 49 airplanes in total. Co.'s flight network consists of 76 locations (45 abroad and 31 domestic flight locations in 30 countries). Co. also provides cargo services and provides various training services.
Turk Hava Yollari is engaged in the airline industry with the airline flying to 103 destinations, throughout Turkey and internationally. As of the year end, Co. maintains 66 aircrafts with a total seat capacity of 10,672, and leases a A300-200 cargo aircraft. Co. has various services for their customers which include: various ways of checking in and on-line ticket sales.
Wizz Air Holding is a European airline. As of Mar 31 2017, Co. provided more than 500 routes from 28 bases, connecting 141 destinations across 42 countries. Co. has two reportable segments: the airline and the tour operator business units, marketed under the Wizz Air and Wizz Tours brand names, respectively. Wizz Air sells flight tickets and related services to external customers and, to an extent, to Wizz Tours. Wizz Tours sells travel packages to external customers covering the network of Wizz Air.
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.
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