"Bloomberg": Two Albanian airlines risk bankruptcy this winter

2022-09-06 20:11:32Biznes SHKRUAR NGA REDAKSIA VOX

"Bloomberg": Two Albanian airlines risk bankruptcy this winter

Europe's weakest airlines face an increased risk of collapse this winter as countries that bailed out airlines during the Covid crisis focus elsewhere amid rising inflation.

Companies now face a squeeze from higher fuel and labor costs combined with a seasonal drop in travel as European governments struggle to meet rising household bills.

Smaller airlines in Central and Eastern Europe will be more vulnerable, Bernstein analysts Alex Irving and Clementine Flinois said, citing a new model for assessing bankruptcy risk based on competition and capacity levels. , route networks and potential costs from leasing and replacing aircraft.

Europe's top six airlines face negligible risk, Bernstein said, listing Ryanair Holdings Plc, EasyJet Plc and Wizz Air Holdings Plc that retain investment-grade credit ratings and legacy groups Air France-KLM, IAG SA and Deutsche Lufthansa AG still able to rely on government assistance if required.

The most exposed companies include one from Cyprus and two from Albania, as well as airlines based in Belarus, Bulgaria, the Czech Republic, Georgia, Moldova and Romania.

According to the New York-based American economic magazine, the bankruptcy of these airlines will favor the strongest "players" in Eastern Europe, mainly Wizz and Budapest-based Ryanair, according to the Bernstein agency, which said they have the ability to distribute with speed planes in the newly polished markets.


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