Airlines tap stock and bond markets as they prepare for surge in bookings

Stock market debuts and debt sales are accelerating for airlines, fuelled by an improving outlook for companies expecting a big lift from the reopening of the world’s major economies. BA owner IAG was set to raise E1.2b in the bond markets on Thursday, just a day after US carrier Sun Country Airlines soared in its Wall Street debut. The fundraisings come as investors seek to tap into the “reopening trade” in which companies that lagged behind during the height of the pandemic are likely to lead the way as countries lift curbs on social activity. It is part of a larger rotation from some of the pandemic’s big winners such as video conferencing provider Zoom and home-fitness equipment maker Peloton to those companies that can expect a boost out of an accelerating Covid-19 vaccine rollout and the US government stimulus package. “That’s in anticipation of the economy reopening, people travelling again, so you’ve got a confluence of favourable macro factors,” said Paul Abrahimzadeh, co-head of North American equity capital markets at Citigroup.<br/>