Ryanair, Air France, Lufthansa, easyJet "Will survive"
London, United Kingdom - "Davy Stockbrokers" revealed it in a report
LONDON - Ryanair, Air France-KLM, Lufthansa and easyJet are the European airlines most likely to survive as surging fuel costs and slowing economies send more of them bankrupt, Irish broker "Davy Stockbrokers" said in a report yesterday.
Interestingly, it didn't include British Airways in the group of the "Survivors".
Stephen Furlong, Davy analyst, said in a note to investors: "The current oil-price-driven crisis could well be the worst to hit the airline industry. We view the long-term winners as the stronger airlines".
European operators including Silverjet and EuroManx have already stopped flying, while others including Air Berlin are planning to cut routes to bolster profitability.
That's because the world airline industry is suffering losses of USD 6,1bn this year based on oil at USD 135 a barrel.
He said the richest airlines with the lowest operating costs, such as Ryanair, are best placed.
Those with poor balance sheets and older planes, including Alitalia, Austrian Airlines and SAS, are the most vulnerable. Air Berlin, Vueling, Clickair and SkyEurope are also vulnerable, according to the note.
Source: Avionews
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