Great article. I am a suffering holder but see the light at the end of the tunnel and the recovery by ~end of next year, one the P&W engine issues have been resolved.
I initially liked their expansion into the middle east, but have since cut that. This could be considered good news to focus on their core market
Thank you very much. The engine problem has been compounded by significant cost inflation, and the resulting lack of visibility has had a major impact. However, I believe we just need to let the forces of supply and demand play out, and trust in the management team, which, despite making mistakes, iterates quickly.
Great article, I see things very similarly with Wizz. Obviously it is a riskier play than Ryanair, but has a much bigger upside. The two are and probably will dominate Europe and it is just a matter of time (and capacity) to gain more market share from other carriers.
But Wizz is more exposed in case of an economic turndown.
One question, though: how did you get the data to compare Wizz And Ryanair cost? They tend to publish different metrics (Wizz: CASK, Ryanair cost per passenger).
Thanks for your comment! Totally agree. Im usually on more pure value ideas. In normal cases , seeing no margin of security on turnaround side I would discard the idea. But this one with all the offer constrain and low cost leadership got me trapped a little more.
About Ryanair KPI you have to use Avaiable seats per Mile, convert into km and then calculate all the ASK lines.
Great article. I am a suffering holder but see the light at the end of the tunnel and the recovery by ~end of next year, one the P&W engine issues have been resolved.
I initially liked their expansion into the middle east, but have since cut that. This could be considered good news to focus on their core market
Thank you very much. The engine problem has been compounded by significant cost inflation, and the resulting lack of visibility has had a major impact. However, I believe we just need to let the forces of supply and demand play out, and trust in the management team, which, despite making mistakes, iterates quickly.
Great article, I see things very similarly with Wizz. Obviously it is a riskier play than Ryanair, but has a much bigger upside. The two are and probably will dominate Europe and it is just a matter of time (and capacity) to gain more market share from other carriers.
But Wizz is more exposed in case of an economic turndown.
One question, though: how did you get the data to compare Wizz And Ryanair cost? They tend to publish different metrics (Wizz: CASK, Ryanair cost per passenger).
Thanks for your comment! Totally agree. Im usually on more pure value ideas. In normal cases , seeing no margin of security on turnaround side I would discard the idea. But this one with all the offer constrain and low cost leadership got me trapped a little more.
About Ryanair KPI you have to use Avaiable seats per Mile, convert into km and then calculate all the ASK lines.