In a surprising twist, despite forecasting nearly five billion scheduled flights and close to $1 trillion in revenue for 2024, the airline industry is witnessing a significant decline in stock values among its top players. According to AltIndex.com, six of the ten largest airline companies by market capitalization have experienced year-to-date stock value drops, highlighting investor concerns amid booming demand for air travel.
Significant Losers: Air China and Ryanair
Air China and Ryanair have emerged as the biggest losers, with stock values plummeting by 19% and 14%, respectively. Despite showcasing robust financial growth and recovery with an increase in passenger and cargo traffic, Air China saw a staggering $2 billion decrease in stock value over the past six months.
Ryanair, the world’s second-largest airline by market cap, has not been immune to this trend. Even though it reported a record net profit of €1.92 billion for the fiscal year ending March 2024 and an all-time high passenger count of 184 million—an increase of 24% from the pre-pandemic year 2020—, its stock value dropped by $4.5 billion year-to-date. The geopolitical and industry uncertainties and delays in Boeing 737 MAX deliveries have dampened investor confidence.
Other Notable Declines
Other significant players have also felt the heat. China Southern Airlines and China Eastern Airlines experienced losses of approximately half a billion dollars in stock value in the first half of the year. Similarly, US-based Southwest Airlines saw a year-to-date $300 million decline in stock value. German airline giant Lufthansa faced the most severe drop, with a nearly 30% plunge in stock value in 2024.
Bright Spots: InterGlobe Aviation and Turkish Airlines
Contrasting these declines, InterGlobe Aviation (the parent company of IndiGo) and Turkish Airlines have shown remarkable performance, positioning themselves as the best performers among the top ten airline companies.
InterGlobe Aviation reported a stunning turnaround from a $370 million loss in 2023 to a net income of nearly $1 billion in fiscal year 2024. This recovery was driven by a 23.4% increase in passengers, totalling 27.5 million. Consequently, the company’s stock value surged by an impressive 45%, reaching nearly $20 billion from $13.7 billion in January.
Turkish Airlines also demonstrated robust performance with significant growth in passenger numbers, Available Seat Kilometers (ASK), and cargo operations. This growth propelled its stock value by 23%, translating to a $2.5 billion increase since the start of the year.
Investors Remain Cautious
Despite the overall increase in demand for air travel, investor sentiment remains cautious due to various geopolitical and operational challenges facing the industry. The substantial stock value drops among major players underscore the uncertainty looming over the sector.
For a comprehensive analysis and the latest statistics, visit AltIndex.com.
Written by: Christine Nguyen
