European airline shares recover from Brexit slump
Global airline shares rose almost a third in 2017, while European airline shares recovered from the Brexit-hit 2016, an airline industry group has highlighted.
The International Air Transport Association’s (IATA) latest report said global airline share prices rose more than 4% in November, increasing almost 29% in 2017.
Airline shares outperformed the global equity market by 7%, the report said.
The IATA said the European airline index finished the year 68% higher than where it started, as shares recovered from the Brexit vote in 2016, helped by a backdrop of robust regional economic and passenger demand.
The North American index had a more mixed year, but shares rallied at year-end in line with the wider equity market after the Trump tax plan was passed, according to the report.
Ryanair remains the most valuable of the big three airlines in Europe, with a market capitalisation of just over €19bn. Its shares in Dublin have climbed above €16 this month, having began the year at just over €15.
Aer Lingus-owner IAG, which also owns British Airways, Iberia and Vueling, is valued at just under £13.35bn (€15.06bn), while shares have fallen from £6.68 at the beginning of the year to around £6.50 in London.
German airline Lufthansa is valued at €13.7bn, with shares in Frankfurt down from over €30 at year’s beginning to around €29.
