Deutsche Bank has downgraded easyJet PLC (LSE:EZJ) to 'hold' and upgraded Ryanair Holdings PLC (LSE:RYA) to 'buy', flagging rising macro uncertainty and weaker GDP expectations in Europe and the US. The shift comes as part of a broader reassessment of European transport stocks, with analyst Andy Chu warning that earnings across the sector remain highly exposed to the economic cycle.
Ryanair and easyJet , which do not operate at London's Heathrow Airport, are adding extra capacity in and out of other British airports to offer alternatives for passengers affected by Heathrow's sudden closure.
Jet2 PLC's warning on Wednesday of mounting costs saw peers lose altitude across the board as investors mulled pressure on airlines ahead. Shares in the AIM-listed operator tumbled 10.5% after it flagged profit margins could be squeezed over the coming year.
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