IAG vs EasyJet stocks: Is EZJ still the better investment?
When it comes to investing in the airline industry, two of the most popular options are International Airlines Group (IAG) and EasyJet (EZJ). Both companies have a strong presence in Europe and offer competitive prices for their services. However, with the ongoing pandemic and its impact on the travel industry, investors may be wondering which stock is the better investment. IAG, the parent company of British Airways, Iberia, and Aer Lingus, has seen a significant drop in revenue due to the pandemic. In 2020, the company reported a loss of €4.2 billion, compared to a profit of €2.6 billion in 2019. However, IAG has taken steps to reduce costs, including cutting jobs and reducing its fleet size. The company has also secured a €2.75 billion loan to help weather the pandemic. On the other hand, EasyJet has also been hit hard by the pandemic, with a loss of £1.27 billion in 2020. However, the company has taken a different approach to cost-cutting, focusing on reducing its carbon footprint and increasing efficiency. EasyJet has also secured a £1.4 billion loan and has raised additional funds through a share placement. So, which stock is the better investment? It ultimately depends on your investment strategy and risk tolerance. IAG may be a better option for investors looking for a more established company with a diverse portfolio of airlines. However, the company's heavy reliance on international travel may make it more vulnerable to future disruptions. On the other hand, EasyJet's focus on sustainability and efficiency may make it a more attractive option for socially responsible investors. The company's lower cost structure may also make it more resilient in the face of future disruptions. It's important to note that investing in the airline industry comes with inherent risks, especially during a pandemic. Both IAG and EasyJet have seen significant drops in revenue and may continue to face challenges in the coming months. As with any investment, it's important to do your research and consider your own financial goals before making a decision.