Barclays maintains bullish view on budget airlines over traditional rivals
13/10/2025 13:52
** Given current market and economic conditions, Barclays maintains a preference for low-cost carriers (LCCs) over traditional "flag" airlines ** The brokerage lists the upcoming UK budget, the macroeconomic environment, and geopolitical tensions as key risks for the sector ** In its view the enthusiasm for European flag carriers following Delta's DAL.N Q3 results is "excessive" ** While the US airline did point to better Atlantic trends in Q4, the key positive news was in the domestic market inflection, Barclays says ** The brokerage notes that although September quarter was disappointing for airlines on North Atlantic and intra-European routes, trading for autumn looks slightly brighter ** A slower growth strategy is seen as safer for the upcoming winter season, it adds ** Barclays says it sees positive catalysts ahead for Ryanair RYA.I and Norwegian Air NAS.OL as well as leisure travel operator TUI TUI1n.DE ** It upgrades Norwegian to "overweight" from "equal weight", raises PT by 4.4% to NOK 17.75 ** According to the broker, Norwegian stands out with conservative growth, improving revenue trends, and cost easing on the horizon
| COMPANY | NEW RATING | OLD RATING |
|---|---|---|
| Aegean AGNr.AT | -- | overweight |
| easyJet EZJ.L | -- | overweight |
| Jet2 JET2.L | -- | overweight |
| Ryanair RYA.I | -- | overweight |
| Wizz Air WIZZ.L | -- | overweight |
| Norwegian | overweight | equal-weight |
| Air France KLM AIRF.PA | -- | equal-weight |
| IAG ICAG.L | -- | equal-weight |
| Lufthansa LHAG.DE | -- | equal-weight |
| Finnair FIA1S.HE | -- | underweight |
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