Why airlines are 'attractive value opportunities'

Markets change, but human nature does not. This year's pandemic-induced swings in sentiment have created opportunities to buy best-in-class cyclical businesses in unloved industries.

There has been no industry more severely impacted than airlines, with aircraft grounded and passenger volumes taking an unprecedented hit.  In Europe, the pandemic is likely to turbocharge a supply-side capital cycle that was already well underway, with many airlines teetering on the brink of bankruptcy and reducing route capacity in 2019. However, there are winners and losers in every crisis, and players with scale at the bottom of the cost curve that have strong balance sheets and operational flexibility to weather the storm will likely emerge stronger. Transport companies: How the ...