- Air travel demand is recovering strongly.
- 16 per cent dividend yield.
- 57 per cent discount to spot net asset value (NAV).
The airline industry nose-dived during the Covid-19 pandemic, but the sector is set to return to profit in a major way this year. Industry-wide revenue is forecast to bounce back to 93 per cent of pre-pandemic levels, buoyed by strong growth in international travel and the re-opening of China’s borders. This is good news for Asian airlines in the region and none more so than Dubai-backed Emirates Airlines. It’s also good news for a UK aircraft leasing fund that holds 50 per cent of its fleet with the Middle Eastern airline and that offers investors an eye-catching 16 per cent dividend yield and a deep value buying opportunity.
Despite economic uncertainty and inflationary pressures on fares, air passenger travel continues to gain momentum.
