The Bloomberg World Airlines Index soared 15% this month but is 17% below its 2020 peak, set in January before the coronavirus outbreak hit the world with full force. Leisure travel looks set to rebound sharply in coming months, if bookings are any guide, though a revival of business trips and intercontinental flights seems a bit further off.
British Airways parent IAG SA on Friday posted its first annual loss in almost 10 years, but said there’s reason for optimism about this summer. Analysts are skeptical about the recovery. Among major European airlines, brokerages see only two providing investors with a positive share-price performance over the next year. For Deutsche Lufthansa AG and Air France-KLM, the average analyst price target implies declines of more than 40%.
If the vaccine is widely accepted, she said, the next thing to watch is whether Asia countries use so-called vaccine passports -- certificates to exempt travelers from quarantines or have shorter quarantine time."This will be a huge catalyst for the sector, ” she said.