Bernstein Reframes Airline Analysis ✈️💰

[johnblockbuster]

Traditional metrics like operating margin or ROIC may mislead when comparing airlines. Low-cost carriers show higher margins, but unit economics (EBIT/ASK) often favor network airlines.

Example 2025:

Ryanair: 16% margin, €0.8ct EBIT/ASK

IAG: 14% margin, €1.3ct EBIT/ASK

Bernstein recommends disaggregating ROIC into six components (EBIT/ASK, tax, distance, aircraft gauge, plane value, other assets) to identify true advantages.

Key takeaway: Operating margin alone is misleading; IAG leads in unit economics and is Bernstein’s top pick, rated Outperform with a £4.70 price target.

[Nahid10]

️ Don’t be fooled by operating margins alone — Ryanair looks better on the surface, but IAG’s EBIT/ASK tells the real story.

[jacson4]

Bernstein’s six-factor ROIC breakdown is . Unit economics reveal true efficiency drivers that margins hide.