As Omicron concerns dissipate, airline stocks have risen in past days with analysts at Citi bullish on the long-term prospects of long haul carriers.
"We see multiple catalysts that will likely result in the long haul airlines outperforming the short haul carriers," Citi analysts said in a note on Jan. 4.
British Airways owner International Consolidated Airlines Group held onto its ‘buy’ recommendation from Citi, while the bank double upgraded shares of Lufthansa to 'buy', while also upping the stance on Air France-KLM (OTC:AFLYY) to 'neutral'.
Budget carrier Wizz Air Holdings PLC (AIM:WIZZ) was downgraded to 'sell', joining easyJet plc (LSE:EZJ), but Ryanair was maintained on a 'buy' rating.
"We believe the long haul airlines will benefit from the continued momentum in cargo, recovery in corporate travel and transatlantic and the reopening of Asia Pacific travel," the analysts, led by Sathish Sivakumar, said in a note to clients.