Airlines are navigating a complex environment. Post-pandemic travel demand has not wavered as badly as many feared and for every worrisome noise emerging from the sector, there’s another company holding firm.
Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
- Higher-margin than rivals
- Return of dividends and buybacks
- Strong underlying demand
- Heavily discounted
Bear points
- Industry supply chain disruption
- Non-fuel costs creeping up
According to the International Air Transport Association, 2024’s peak travel season “ended with demand at an all-time high”, with global passenger demand rising 7 per cent in September against the same month last year. But various operational headwinds – including supply chain issues and ongoing cost pressures – further complicate the sector investment picture.