Planning a Europe trip? The airlines that are in financial trouble in one chart

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  • Tom Otley

    Interesting chart included from Bernstein analysts in this piece on Market Watch

    Planning a Europe trip? The airlines that are in financial trouble — in one chart


    The piece itself doesn’t contain any revelations though…

    “The recent demises of Alitalia, Air Berlin, and Monarch have rekindled hopes that the European airline sector may, finally, be en route to more consolidation, providing better margins for investors,” the Bernstein analysts wrote in a note this month. “Sadly, we don’t think this is the case yet.”

    The analysts said they don’t expect additional consolidation in the near future among large European airlines, in some cases due to governments serving as big shareholders in the carriers.”



    This is a very incomplete list of airlines when you consider that Virgin Atlantic, Germania and LOT are not on it. However, you do include Flybe, Air Europa and Icelandair which are not exactly giants.Also I understood that Norwegian is in a more precarious situation than Finnair yet the opposite is indicated.
    And what about North American airlines(Canada, USA and Mexico) without considering the rest of the world? Comparisons have to be fair to be credible.
    Thus I do not give much credit to this table despite the apparently prestigious progenitors of it.


    Agree, this is a very particular view of the sector – which paints an incomplete picture.

    Finnair and Turkish are in the “In trouble” category but neither would be allowed to fail by their respective governments, nor would SunExpress be allowed to fail by its parents Turkish and Lufthansa.

    In a number of cases, consolidation is the more likely scenario than seeing an airline fold – even if Aegean and Flybe are as vulnerable as is claimed, there would be several avenues to pursue.


    I had no idea finnair were in trouble!


    How can you put KLM/ Air France in that zoned area when they made E 792 Million in 2017, and more than half this in this 2017’s first half year?!
    Not sure at all of the validity or base of this opinion.

    My share values have tripled in the last 12 months, over 300% in value, from the last two years growth and load factors into the 92% areas!
    Air France admittedly loses the money and KLM makes it, and carries their own brand far better. Their lounges are full, their aircraft are full, their pricing remains modest ex UK. They appear to be one of the most frequent Airlines to connect the UK to any other European hub, and serve 22 (+?) cities.
    Far reduced times to travel Internationally via AMS, as we appear to have no obligation from Airlines or Government for domestic service into LHR for our communities around the UK, unless it makes a profit!

    Some of the Skyteam Airlines are not in my view highly rated, but Garuda certainly are very strong and a high standard as KLM have consitency and brand new aircraft almost entirely replacing their fleet in the last 6 years.
    Delta and some of the Chines Carriers, have bought out Virgin Atlantic, so this seems sure to be integrated soon, and become a member of Skyteam.
    I see nothing but growth with KLM, new Lounge facilities being expanded, the best European hub, planned integrated since it was built. With 20 years plans ahead being implemented now, and 6 runways, they show the UK up in that it cant even agree on buidling a runway which will take as much time as some countries construct a new International Airport!

    Many of the European Airlines, charge low cost model services now, so what is a low Cost model is not foggy to a traditonal National Carrier.
    I wonder if BA are contrubuting to Marks and Spencer results selling their food and drinks on board now?
    How low cost model can you get?!!

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