A recovery in air travel looks set spark a wave of consolidation among global airlines according to analysts at Credit Suisse.
The process is already underway suggests the broker with the deal yesterday to merge between US carriers Frontier and Spirit and American Airlines investment in Brazil’s GOL.
Frontier’s deal is notable for Wizz Air, adds Credit Suisse, as Indigo Partners holds significant stakes in both companies.
Wizz Air was the company said to have made an approach for easyJet and the broker expects more consolidation moves especially as the low-cost carriers (LCCs) increase market share.
By the middle of the next decade, Credit Suisse expects LCCs to be on a par or even slightly ahead of the flagship brands.
In long-haul, the broker expects a steady stream of partnerships similar to the American Airlines/GOL deal, with British Airways owner IAG likely to look at Latin America to fill in the gaps in its network.
IAG rose 3.5% to 173p today, WizzAir 4.8% to 4,572p and easyJet 4.7% to 707p.