|Bid||1,066.50 x 0|
|Ask||1,066.00 x 0|
|Day's Range||1,053.19 - 1,078.00|
|52 Week Range||840.00 - 1,651.00|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||22.00|
|Forward Dividend & Yield||0.59 (5.66%)|
|1y Target Est||1,479.74|
(Bloomberg) -- EasyJet Plc said a surge in late leisure bookings is lifting ticket prices, aided by a cooler summer in the U.K. and northern Europe.Revenue per seat, which reflects fares, is higher and sales for the three months through June rose 11% from a year ago, Luton, England-based EasyJet said in a statement Thursday. A drop in flight cancellations has cut costs and new analytics are helping it set fares at more profitable levels.The jump in late bookings, which usually attract higher prices, will provide some relief for European carriers that have seen margins squeezed amid a glut in capacity across the region. EasyJet Chief Executive Officer Johan Lundgren cautioned that the trend is tied to the weather and a lack of distractions such as major sporting events, with overall demand still relatively weak.“We’re pleased with the late-booking environment,” Lundgren, who surprised the market by luring a senior executive from Ryanair Holdings Plc, said on a call, while adding that it doesn’t mean Europeans are all rushing to the beach. “The weather has been a factor, and the World Cup the previous year.”Mean U.K. temperatures in June 2018 were 1.8 degrees Celsius above the long-term average, compared with only 0.2 degrees higher last month, according to Met Office figures.Shares of EasyJet, the first major European carrier to provide an update on summer earnings, rose as much as 4.2% and traded 3.6% higher at 1,071.5 pence as of 8:50 a.m. in London. That pares the 2019 decline to 3% and values Europe’s second-biggest discount carrier at 4.3 billion pounds ($5.4 billion).Backup PlanesThe carrier said it’s on course to meet full-year earnings estimates, predicting a pretax profit of between 400 million pounds and 440 million pounds for the year through September. That compares with an analyst consensus figure of 423 million pounds, it said.The third-quarter passenger tally increased 8% to 26.4 million, more than the 25.6 million average estimate in a Bloomberg survey. Expenses fell as the company cut cancellations by two-thirds by optimizing scheduling and doubling the number of backup planes, reducing compensation payments.Data-driven initiatives have allowed EasyJet to adopt more granular pricing for both seats and ancillary sales on a route-by-route basis, providing a boost of as much as 10 million pounds in the third quarter.EasyJet has recruited Peter Bellew as chief operating officer from rival Ryanir, where he occupied a similar post. Bellew had been seen as a potential successor to Ryanair boss Michael O’Leary and disclosed his exit from the Dublin-based carrier only last week, without saying where he was going.Lundgren described Bellew, 54, who in an earlier job ran Malaysian Airlines, as “a great leader with a proven track record.” Bernstein analyst Daniel Roeska said in a note that the Irishman is well-respected and “a good hire.”(Updates with analyst comment in final paragraph.)To contact the reporter on this story: Simon Foy in London at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Christopher Jasper, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
EasyJet has hired rival Ryanair’s operations chief Peter Bellew, a 30-year industry veteran, as it navigates intense competition in the European short-haul market. The airline announced Mr Bellew’s appointment as chief operating officer alongside a trading update that revealed an 11 per cent rise in revenue for the latest quarter. EasyJet said a strong Easter and a reduction in long delays and cancellations had helped boost total revenue to £1.76bn in the three months to June.
Britain's easyJet on Thursday reported third quarter trading in line with expectations, boosted by more customers taking optional extra services and enabling it to reiterate its full-year profit forecasts. The budget airline also announced that it had poached Peter Bellew as its chief operating officer from Ryanair. EasyJet said revenue for the quarter ending June 30 increased by 11.4% to 1.8 billion pounds, driven by more bookings, initiatives to optimise its pricing and more ancillary revenue from additional services such as allocated seating and luggage check-ins.
● Thomas Cook dropped to a record low after the holiday company scrapped plans to sell its airline and said it was in advanced talks about a bailout from Fosun, its 18 per cent shareholder. Core lending banks were said to be supportive of the recapitalisation, meaning existing shareholders would be significantly diluted as debt was swapped for equity. Thomas Cook also included a profit warning, saying the European travel market had become progressively more challenging since the announcement of the strategic review in February with competition intensifying.
Norwegian Air Shuttle chief executive Bjorn Kjos declared his departure was “way overdue” as he announced plans to step down after 17 years in the role with a parting warning over company profits. The co-founder of the airline leaves at a difficult time for the group with shares down more than 75 per cent since April 2018 and its finances stretched following bold plans to take on the transatlantic airlines in the long-haul market. Shares traded flat on Thursday as Mr Kjos had signalled his intention to leave the company, the third-largest low-cost carrier in Europe behind Ryanair and easyJet.
Every investor in easyJet plc (LON:EZJ) should be aware of the most powerful shareholder groups. Generally speaking...
Every investor in easyJet plc (LON:EZJ) should be aware of the most powerful shareholder groups. Insiders often own a...
BENGALURU/PARIS/SINGAPORE June 20 (Reuters) - When Karan Mehrotra booked a flight from Delhi to Guwahati, he did not go to a travel agent or an airline website. Instead, he turned to Amazon, the world's biggest online retailer which now sells tickets to Indian customers and offers them an easy payment process and cash-back offers. "It was just a lot simpler," Mehrotra said of booking a flight through Amazon.
Dividend paying stocks like easyJet plc (LON:EZJ) tend to be popular with investors, and for good reason - some...
(Bloomberg Opinion) -- If it’s true that all political lives end in failure, then the same could be said for business. Carsten Spohr became Deutsche Lufthansa AG’s chief executive in 2014, made an impressive start, and had his contract extended to the end of 2023. He may regret signing up for that long.The German airline’s shares tumbled 12 percent on Monday after it issued a second profit warning in as many months. It expects to generate as little as 2 billion euros ($2.2 billion) of operating profit in 2019, up to 25% below what was expected by analysts.The stock is now worth less than four times last year’s earnings, a pretty pitiful multiple, and investors who bought the stock when Spohr took over have lost money. Suddenly, a man feted as one of Germany’s most accomplished corporate leaders looks ordinary.How times have changed. Spohr’s response to a 2015 aircraft crash at the Lufthansa offshoot Germanwings was both sensitive and assured. Later on he faced down industrial action to win concessions from staff on pensions. In 2017, Lufthansa’s profit hit a record high and the stock price soared 150%. Spohr was duly named Manager of the Year by Germany’s influential Manager Magazin.Sustaining all of this was always going to be hard in the notoriously unstable airline business. Fuel costs have risen, rivals have added new capacity and air cargo demand has waned, thanks in part to U.S. President Donald Trump’s trade crusades. (It’s worth reading Bloomberg’s William Wilkes on Lufthansa’s litany of problems.)But Spohr can’t just blame external factors. His company has chased growth to the detriment of profitability and it has spent heavily on new jets and integrating older ones from the insolvent Air Berlin. Gross capital expenditure jumped 8% to 3.8 billion euros ($4.3 billion) last year, leaving precious little spare cash.While Lufthansa is still doing fine on long-haul routes, Spohr’s big idea — a budget subsidiary called Eurowings — has been a disaster. The new unit was meant to challenge Ryanair Holdings Plc and EasyJet Plc in Europe, and to serve long-haul holiday destinations, but it lost more than 230 million euros last year. Instead of breaking even in 2019, as was anticipated, it will now remain in the red.Spohr has hit the brakes on Eurowings’s expansion but the company plans to “vigorously defend” its dominant market position in Germany and Austria. Translated, that sounds worryingly like: “Fare war? Bring it on.”Ryanair is pursuing a similar battle of attrition against weaker rivals such as Norwegian Air Shuttle ASA, with the aim of forcing them out of business. But Ryanair’s costs are much lower than those of Eurowings.Of course, Lufthansa can afford a couple of bleak years. At the end of March it had 12 billion euros of net debt, aircraft lease and pension liabilities — or about 2.4 times Ebitda (a measure of earnings). Norwegian’s leverage is miles higher.But when your corporate strategy is all about acquisition (Thomas Cook Group Plc’s German arm could be next on Spohr’s shopping list) and heavy investment, falling profits are doubly alarming. They suggest cash might be misallocated. “We think the sooner the company focuses on value for shareholders and less chasing or defending market share, the better for the shares. We see no hint of that yet,” RBC’s Damian Brewer complained.At an investor event next week, Spohr has a chance to explain how he plans to fly Lufthansa out of this mess. Once seen as a safe steward of Lufthansa’s capital, he’s starting to look a little reckless.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European stocks were in recovery mode on Friday after a cautious message from the European Central Bank hit investors' appetite for risk in the previous session, with traders eyeing a U.S. jobs report and U.S. trade tussles with Mexico for fresh direction. Automakers climbed on a report that U.S. President Donald Trump could delay the tariffs he had threatened to put on Mexican goods as soon as this coming Monday, while French drugmaker Sanofi gained on its appointment of a new chief executive. France's CAC 40 outperformed its euro-peers with a 0.9%, helped by French pharma giant Sanofi.
As the pound fell, the FTSE 250 lost 1.4% to hit its lowest point since March 29, when Britain was originally scheduled to exit the European Union. Dublin's main index, often regarded as a barometer of Brexit jitters, was also down nearly 1.4%. The turmoil was compounded when prominent Brexit supporter and Leader of the House of Commons, Andrea Leadsom, resigned from the government.
Global risk appetite was jolted after Reuters reported Alphabet Inc's Google suspended some business with Huawei, while Apple Inc supplier Lumentum Holdings Inc said it had discontinued all shipments to Huawei. "Seeing as the United States has taken a tough stance against Huawei, traders are not hopeful that the U.S.-China trade dispute will be resolved quickly," David Madden, market analyst at CMC Markets UK, wrote in a note. Germany's DAX dropped 1.6%, while French stocks shed 1.5%.
After initially falling 6%, the airline's shares made up some ground after O'Leary, who helped to develop the no-frills airline model in Europe, argued that lower fares and profitability for a couple of years were a price worth paying to boost market share and hasten consolidation. O'Leary said the lower fares and profit were cyclical and that four or five European airlines were likely to emerge as the winners in the sector. "Our strategy would be to keep adding capacity as quickly as we can in all the markets where we can," said O'Leary, who has been in charge of Ryanair since 1994.
With summer vacation around the corner, here's a look at what you need to know before you purchase a ticket on a budget airline.
British budget airline easyJet said it would meet expectations in 2019 despite a worse trading environment than last year as worries over Brexit and economic weakness in Europe hurt consumer demand. EasyJet had already said last month that its outlook for the second half of the year was more cautious because European travellers were holding off booking their summer holidays for fear of how the Brexit process will pan out. EasyJet shares, which had fallen 13% since the April trading update to their lowest in over two years, were up 3.2% by 0844 GMT.