Barclays downgrades its recommendations for the airlines Ryanair and Norwegian to Equal Weight from Overweight. The price targets are cut to 24 from 28.50 euros and 11.50 from 20 Norwegian kroner, respectively.
The reason is high fuel prices, which are expected to pressure profits in the fourth quarter and in 2027. Barclays believes the airlines will struggle to compensate with higher ticket prices. Low-cost carriers are particularly exposed.
The bank’s forecasts are below consensus, especially for 2027. Barclays prefers IAG among the larger airlines due to higher margins and better fuel hedging.
