Travel & Tourism

Sustainable fuel surge may mean fewer UK flights

24 Mar 2025

Britain wants airlines to ramp up use of sustainable aviation fuel at a faster pace than in the EU. That’s laudable, with the hard-to-decarbonise sector accounting for 2% of global emissions. But the margin hit for short-haul carriers like easyJet may risk them flying elsewhere.

European airline tailwinds cloud M&A glide path

6 Mar 2025

Lufthansa and Air France-KLM shares leapt after strong finishes to the year, closing the gap with bigger $20 bln rival IAG. Eventually, Europe’s market could slim down to a small group including these players. Scope for a stronger 2025 makes it less clear who will buy what.

Aircraft maintenance boom has further to fly

14 Feb 2025

In 2024, stuttering production of new jets saw repairs of older models take on fresh import for the likes of Melrose and Safran. This year deliveries could rise by 25%. But supply chain uncertainty and strong flying demand mean the maintenance profit engine can continue to motor.

India’s travel boom enters the departure lounge

12 Feb 2025

The $12 bln Indian Hotels, owner of the luxury Taj brand, is emerging as a flag bearer of the country's tourism boom. It plans to more than double its properties to over 700 by 2030. But as domestic room tariffs hit the roof, Indians are increasingly eyeing overseas destinations.

China travel boom may be more of a minibreak

6 Feb 2025

Domestic travel is robust, and outbound traffic from the People's Republic could recover to pre-pandemic levels in the Year of the Snake. That's a boon to $50 bln Trip.com and peers. But a weak economy may not be able to sustain investors' wanderlust.

Hong Kong bankers make lemonade out of delistings

15 Jan 2025

Club Med owner Fosun Tourism plans to take itself private, capping a record year of similar deals in a city thirsty for large IPOs. It helps the company's ailing parent and hard-up shareholders get a decent premium. For financiers too, the trend is bittersweet.

European airlines’ tough summer adds to M&A logic

11 Nov 2024

Carriers such as $8 bln Lufthansa and $2 bln Air France-KLM saw rising costs and competition on Eastern routes from Chinese rivals. The logical response for EU players is to look West instead. Bidding for Portugal’s state-owned TAP would drive much-needed consolidation.

China’s consumers regain some lost lustre

7 Oct 2024

Daily cross-border travel is forecast to rise 19% for this year's Golden Week holiday, above pre-Covid volumes. Gamblers have also returned to Macau. Consumption bright spots are scarce, but more middle-class spending will stir hopes that Beijing's stimulus might gain traction.

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Ryanair leads airline sector into strategic cloud

22 Jul 2024

The $17 bln carrier’s shares sank 15% after it warned of weaker summer fares. The airline had hoped slow delivery of planes would mean less competition, allowing it to hike prices and weather higher costs. If customers are now saying no, that’s a problem for the whole sector.

Cyber meltdown points to downsides of efficiency

19 Jul 2024

A software update by $83 bln CrowdStrike grounded flights and disrupted financial markets. That’s possible because businesses work with a small number of providers, seeking lower costs. It supports rich tech valuations, but also heightens the risks of a catastrophic failure.

Americans’ travel bug is too much of a good thing

18 Jul 2024

More US citizens are going to Europe than vice versa, creating a $27 bln tourism-related trade gap, the biggest in over two decades. Sometimes there’s a simple reason: it can be cheaper to see Taylor Swift abroad. But a persistent travel deficit could have ominous symbolism.

Barbarians at Southwest gate overdo upgrade plea

13 Jun 2024

The $17 bln airline’s slow response to weak performance made it an easy target for pushy investor Elliott. Boss Bob Jordan may struggle to keep his job, let alone reshape the business model. Yet his new dissident is too facile about jettisoning defining parts of the culture.

Japan’s luxury boom sparks wishful China thinking

30 May 2024

LVMH and Prada have reported stellar sales in the country, while Richemont’s CEO hailed China’s resurgent overseas shopping as one reason for a 20% annual revenue bump there. But those big spenders have yet to return to pre-pandemic habits. A weak yen deserves more credit.

European airlines’ hot summer belies sector clouds

23 Apr 2024

Jet shortages mean that carriers may be able to charge higher fares this summer, ending years of overcapacity. For stronger players like $25 bln Ryanair, that could mean fatter margins. But it’s likely to be a short-term reprieve for a sector that’s grappling with other costs.

China offers more New Year red flags than packets

19 Feb 2024

A record number of Chinese travelled for the holiday, trips were up 19% from 2019, but they spent less per journey. Overseas travel remains subdued. Consumer tastes are changing but the low confidence fuelling deflation is evident. On that front, there is limited festival cheer.

Capital Calls: TUI decamps

13 Feb 2024

Concise views on global finance: Europe’s largest travel firm is encouraging investors to vote in favour of cancelling its London listing, but the UK need not mourn the loss.

Ryanair clear skies contain Boeing-shaped cloud

29 Jan 2024

Despite a weaker-than-expected third quarter, the $23 bln carrier still predicts record full-year net profit. Assuming holiday bookings hold up, that looks doable. But Ryanair is exposed to the uncertainty surrounding key supplier Boeing in a way that its close rivals are not.

Capital Calls: Greek airport IPO

16 Jan 2024

Concise views on global finance: State-backed Athens International Airport may be able to fetch a 3 bln euro valuation in a planned February listing.

Capital Calls: Ryanair

18 Dec 2023

Concise views on global finance: The 21 bln euro budget airline’s potential 100 mln euro bonus for its CEO looks all the more awkward given the board’s decision last year to tweak the conditions.