This Sunday, summer finally ended and autumn began with the equinox. Tourism companies also leave behind what is traditionally their most prolific period, although this year, on the stock market, it was the last weeks of September that saved the stock market season of the sector. So, European industry has recorded gains of close to 5% since the beginning of June and still has strong upside potential for the coming months.
Until the end of last month, the index that groups the main tourism companies of the Old Continent has barely recorded a slight revaluation that has not even reached 0.5% since June (the summer quarter). In fact, among the tourism companies, only IAG, SSP and EasyJet have recorded profits on the stock market in these three months. However, September managed to save the industry from a weak stock market summer and, with the rebound of the month, the Stoxx 600 Travel & Leisure closes the summer with a rise of almost 5% and the average of the companies it includes still has a revaluation potential of 22%.
In general, the recent drop in oil prices has been one of the catalysts for the rise of companies in the sector, particularly airlines. This month, the price of Brent (the benchmark crude oil on the Old Continent) is below $70 per barrel for the first time since December 2021. Today, the energy commodity has rebounded 7% from this minimum and the barrel is once again above $74. However, for Currently, the monthly balance continues to leave losses of more than 7%in which it would be its worst performance in a month since October 2023, when it lost more than 8% of its value. Over the year, the price of oil fell by almost 4%.
This increase was mainly supported by the strong revaluation accumulated by IAG shares. The Spanish-British airline has managed to gain just over 20% on the stock market since June. and its price is already reaching 2021 levels and is close to 2.50 euros per share. In September alone, the company that owns Iberia rose almost 14% in what would be its most bullish month since last March and, in addition, it has chained 14 consecutive sessions of increases, in what is the longest bullish streak in its entire history.
Up to 10 analysts believe that its shares will manage to exceed the 3 euro level in the coming months, at which it has not been listed since March 2020, in the midst of the pandemic explosion, and even those who have an increase potential of 21%. During the year, the company revalued itself by 39% on the stock market (it would be its most bullish year since 2017) and added almost 3.4 billion euros to its capitalization during the year, now placing its market value above 12.1 billion euros. Its price is at the levels of April 2021.
From June to the end of this summer, EasyJet shares have accumulated increases of almost 14% on the stock market and its price is at the levels of last May. Of these stock market gains, only 10% were made during the month of September and this would be its best monthly result since December last year. Indeed, thanks to the increase in recent weeks, the English airline has managed to make its annual stock price positive.
Now, the company is once again steering its stock market trajectory towards its current highs of the year, of which it is at 9%. Analysts’ estimates indicate that in the coming months, the company’s shares will appreciate by another 25%, the highest potential of European airlines.
Aena’s summer has also been unforgettable. The company that owns airports such as Barajas or El Prat has made profits of 10% since June, of which 8 points were made in September alone. The airport company is also trading at historic highs and increases its revaluation in the year to 20%. But the rise is not yet over and analysts attribute a 5% upside potential and recommend buying its shares.
However, only these three companies have recorded double-digit increases since last June. InterContinental Hotels and SSP are the other two companies that are recording increases during the summer season, although very slight, with increases of around 2% and 1% respectively. During the year, the first has been revalued by 13% on the English stock exchange, but for experts, it is trading without potential for growth and they advise selling its shares. For its part, the following, however, suffers losses close to 28% over the year, but its potential reaches 65%.
Spanish Amadeus has only suffered a slight correction of 0.3% since June, but all of this is due to September. The falls that shook the stock markets in August (when the drums of recession sounded again) have also impacted their behavior and, during the month, the tourism company collapsed below the 55 euro mark. From these lows, Amadeus manages to rebound by around 17%. Only around 7% have done so so far in September (it is one of the most bullish companies on the Ibex 35 during the month), in what would be its most bullish month since last May.
Thanks to this month’s rise, the company has managed to record profits on the stock market again for the year. Experts expect it to continue growing in the coming months by up to another 11% and advise to hold its shares.
Lufthansa airline has remained virtually flat since June, although before the September increases, the German company lost more than 8% of its value during the quarter. With the profits it is accumulating this month, this would be the best 30-day loss since November 2023. With this rebound, it reduces its annual losses to 20%, but its potential for the following months is barely 2%, according to experts. They advise keeping your shares in your portfolio.
In August, shares of the French hotel company Accor even reached the lowest levels of the year, although they closed last month with gains of more than 7%, breaking the streak of decline accumulated since April. Now, in September, it revalues another 4% and, From these lows, its shares rebounded up to 22%.. Thanks to this boost, the company has once again accumulated double-digit growth over the course of the year. Looking ahead, the company could grow by another 21%, according to analysts. Their recommendation is to buy.
Ryanair’s weak profit and loss account for the financial year is weighing heavily on the airline. low cost The stock market year started well, hitting all-time highs in April. But forced to lower its price, the company has lost nearly 5% since June. In a single session in July, when it reported its quarterly results, it lost more than 17% of its market value and its share price fell to its lowest level in 2023. Since then, it has rebounded 22% (only 5% has increased this month). Its decline over the year is about 13%, but with a potential of 15% would be able to erase the red numbers. The company also realizes the best buy recommendation of the planes from the Old Continent.
