Storm for Ryanair, IAG, and Lufthansa masks some recovery hopes

Aer Lingus parent company IAG has announced pre-tax loss of €4.2 billion in the first six months of the year. Picture: Sam Boal/RollingNews.ie

Shares in Ryanair are much higher, while long-haul carriers IAG and Lufthansa are only a little higher since the onset of the Covid-19 crisis in March, reflecting investor views on the relative speed of recovery facing the airlines.          

Investors appear to be assessing that short-haul airlines like Ryanair may have a better chance of recovery if tourism travel speeds back next year, while long-haul carriers such as the BA and Aer Lingus owner IAG, which also rely on business travellers, may likely take years longer to climb back to 2019 passenger levels.