Saudi Catering faces challenges in short and medium-term, says Itqan Cap

Saudi Airlines Catering Co. is facing a challenging future in the short and medium-term, as international travel restrictions continue in order to combat COVID-19, Itqan Capital said in a research note.

“Despite some easing in domestic travel restrictions, the future remains uncertain as there is not yet a cure or a vaccine for COVID-19, and an easing in the restrictions could potentially result in further spread of the virus,” the brokerage firm added.

Itqan further emphasized that Catering should focus solely be on surviving the uncertainty ahead as the losses that it’s facing at the moment are ones that are not expected to be compensated for in the near future.

Therefore, the brokerage firm kept Catering “under review” due to the unknown duration of the pandemic, in order to properly estimate whether the rebound is in the near future, or it will take a longer time to restore the degree of consumer confidence for air travel.