1、 Watchlist the stock on Insights Direct to receive prompt updatesWatchlist the stock on Insights Direct to receive prompt updates ed:JS/sa:DT,PY,CS Staying selective amid uneven horizonsStaying selective amid uneven horizons 2024 was a turbulent 2024 was a turbulent yearyear for for airlinesairlines

2、,grappling with grappling with pricing and cost pressurespricing and cost pressures 2025 is shaping up to be a better year2025 is shaping up to be a better year for US and for US and European airlinesEuropean airlines,with,with robustrobust demand demand and and yieldyield and cost headwinds and cos

3、t headwinds easingeasing,while APAC woes persist,while APAC woes persist Sector riskSector risk-toto-reward remains favourable,reward remains favourable,drivendriven by by a positive earnings outlook and attractive valuationsa positive earnings outlook and attractive valuations Stock picks:US Stock

4、picks:US DeltaDelta and and United;United;Europe Europe IAGIAG and and Ryanair;Ryanair;A APACPAC QantasQantas and and Cathay PacifiCathay Pacific The airline industry had a challenging 2024,The airline industry had a challenging 2024,with most carriers posting lower earnings despite capacity growth.

5、Despite relatively strong passenger demand,yields fell due to rising competition and fading pent-up travel demand,leading to fare discounts.Inflationary pressures and elevated labour and maintenance costs also weighed on profitability.Additionally,slower capacity growth and prolonged use of older ai

6、rcraft impacted operational and fuel efficiency,leading to significant margin erosion and earnings declines for most airlines.U.S.and European airlines 2025 prospects look brighter,U.S.and European airlines 2025 prospects look brighter,driven by a healthy macroeconomic backdrop,rising real wages,str