Chocks away or Mayday? How are global airlines weathering the COVID storm?
Time for your weekly dose of all-things-financial to set you up for the trading week ahead. Today, we’re looking at the biggest airlines to see how they’re getting on through the global pandemic. After that, we’ll take a glance at all of the events you need to keep a look-out for this week. Tray table up? Seat in the upright position? Let’s go!
Airlines + pandemic = bad news
2020 has not been a stand-out year for many industries. But you’d be hard-pressed to find a more shaken industry than that of travel. Months of lockdown and movement restrictions have meant that people simply couldn’t travel, even if they wanted to. How’s that impacted the airlines and what might come next?
1. British Airways (IAG)
Price on 02.01: 636.20 GBX
Price on 29.05: 228.50 GBX
2020 High: 671 GBX
2020 Low: 168.20 GBX
YTD percentage change: -64.08%
BA (IAG)
Source: Google
2. Delta Air Lines
Price on 02.01: 59.04 USD
Price on 29.05: 25.21 USD
2020 High: 62.03 USD
2020 Low: 19.19 USD
YTD percentage change: -57.3%
DAL (YTD)
Source: Google
3. Easyjet
Price on 02.01: 1,430.00 GBX
Price on 29.05: 680.00 GBX
2020 High: 1,552.00 GBX
2020 Low: 475.00 GBX
YTD percentage change: -52.45%
EZJ (YTD)
Source: Google
4. Ryanair
Price on 02.01: 14.93 EUR
Price on 29.05: 11.26 EUR
2020 High: 16.10 EUR
2020 Low: 8.14 EUR
YTD percentage change: -24.58%
RYA (YTD)
Source: Google
5. American Airlines
Price on 02.01: 29.09 USD
Price on 29.05: 10.50 USD
2020 High: 30.40 USD
2020 Low: 9.39 USD
YTD percentage change: -63.91%
AAL (YTD)
Source: Google
6. Lufthansa
Price on 02.01: 16.68 EUR
Price on 29.05: 9.14 EUR
2020 High: 16.68 EUR
2020 Low: 7.18 EUR
YTD percentage change: 45.2%
LHA (YTD)
Source: Google
Blue sky on the horizon?
It was never going to be easy reading, was it? Six of the biggest airlines in the world, and not one of them with a lovely shade of green or even a hint of an upward-pointing chart. It’s been a particularly difficult five months for American Airlines and IAG (owner of British Airways, Iberia, Vueling, and Aer Lingus) as the above graphs demonstrate.
However, as infection rates drop and prompt a relaxing of lockdown rules, people are starting to venture out again and life is beginning to return to some level of normality. Should infection rates continue to stay low, there is a good chance that we might be cruising at 35,000 feet again before too long. These companies will certainly hope that’s the case.
If and when rules start to relax you’re definitely going to want to keep an eye on these guys!
This week’s market events
Here’s where you need to keep an ear out this week.
● The week kicks off on Monday with a couple of US PMIs, namely the Markit Manufacturing PMI and the ISM Manufacturing PMI (USD).
● On Tuesday, the RBA announces their Interest Rate Decision (AUD).
● We’ll hear the Aussie GDP Growth Rate (YoY) (AUD) on Wednesday; as well as the Bank of Canada’s Interest Rate Decision (CAD).
● Thursday brings with it the ECB’s Interest Rate Decision (EUR).
● Finally, Friday will be reserved for some important Canadian employment figures (CAD) and the crucial US Non-Farm Payrolls and unemployment figures (USD).
That’s it for this week’s trading preview. If you like what you’ve read here and think your traders might be interested in something similar, talk to our team.
Speak soon
The Contentworks team
