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 the first half of 2020, the company reported a loss of €3.8 billion. 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 storm.
On the other hand, EasyJet has also been hit hard by the pandemic, with a loss of £324 million in the 2020 fiscal year. However, the company has taken a different approach to cost-cutting. Instead of reducing its fleet size, EasyJet has focused on reducing its fixed costs, such as airport fees and maintenance costs. The company has also raised £608 million in funding to help it through the pandemic.
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 who are willing to take on more risk in exchange for potentially higher returns. The company has a larger market share and a more diverse portfolio of airlines. However, the pandemic has hit IAG hard, and there is no guarantee that the company will recover quickly.
On the other hand, EasyJet may be a better option for investors who are looking for a more stable investment. The company has a strong focus on reducing costs and has raised significant funding to help it through the pandemic. EasyJet also has a strong brand and a loyal customer base, which could help it recover more quickly once travel restrictions are lifted.
In conclusion, both IAG and EasyJet have been impacted by the pandemic, and there is no clear winner when it comes to investing in the airline industry. It is important to do your research and consider your investment strategy before making any decisions. Ultimately, the best investment is one that aligns with your goals and risk tolerance.