Intense competition in the European budget airline sector is keeping fares low – great news for passengers, but not so much for shareholders of EasyJet, Ryanair and Wizz Air.
Lack of competition in the commercial aircraft industry prevents customers from dumping the 737 Max.
Business at International Consolidated Airlines Group is steadily climbing in altitude. For shareholders, however, it’s been a bumpy ride.
Shareholders accuse the manufacturer of cutting corners around safety testing in order to quickly roll out the 737 Max to compete with France’s Airbus.
After a promising take-off to the new year, Rolls-Royce Holdings Plc [RR]’s steep share price climb has moved in the opposite direction.
Budget airlines on both sides of the Channel are in for a challenging year as a messy UK-EU divorce exacerbates a low-fare environment that has already depressed earnings.