No two airlines are the same: Each operates in a different market with different business models that have been differently affected by the pandemic. But you wouldn’t know that by looking at the stock market.
When the Covid-19 crisis first rocked the world in early 2020, investors were quick to figure out that low-cost airlines would do better than full-service players. The latter are dependent on carefully designed networks that are profitable because corporate and long-haul travellers pay a premium to fly. Balance sheets also took center stage: Carriers with large debts, like American Airlines, were punished the worst, whereas healthier budget players were seen as gaining market share once travel recovered.
