Ryanair PLC (LON:RYA) and easyJet PLC (LON:EZJ) are expected to see better pricing than flagship carriers such as International Consolidated Airlines Group’s (LON:IAG) British Airways, according to UBS.
Analysts said the quarter to September may be more challenged as pricing trends have deteriorated for the three London-listed airlines.
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Ryanair continues to be positive but average fares deteriorated to 16% from 20% last year, while easyJet plunged to 10% below zero from last year’s 3%.
Still, the amount of summer capacity that has been released is “minimal” compared to the potential capacity release, analysts noted.
Premium carriers are likely to suffer the most, with IAG firmly in the red at -13% compared to -10% in 2019.
“We think business travel will be materially impacted by the crisis but business class seats likely allow for greater social distancing on planes which may prove supportive,” the bank added.
Shares in Ryanair rose 2% to €11.56, while easyJet and IAG advanced 1% to 808.6p and 261.9p respectively at noon.