Because Easyjet staggers in the stock market
All Easyjet forecasts for 2021 that disappointed investors and analysts
Easyjet is losing ground to the London Stock Exchange after the announcement that in 2021 the loss will be higher than in 2020.
The stock of the low cost airline shows a decline of 3% to 628.10 pence, while the Ftse 100 index is down by 0.9%.
The carrier has announced that it estimates the pre-tax loss for the 2021 financial year, ended September 30, between 1.14 and 1.18 billion pounds, after having recorded a red of 835 million in the previous one. Therefore the board will not recommend the payment of a dividend, reports Radiocor .
The company also has indicators that it expects to fly to 70% of 2019 levels in the first quarter of the new fiscal year, which began in October, taking into account the conditions still in place for the pandemic.
"It is clear that the recovery is underway," said CEO Johan Lundgren, pointing to the signs of returning business travel and overall bookings for the next six months that have doubled compared to last year.
Full results for the exercise will be announced on November 30, 2021.
All the details.
DEEP RED
The carrier expects to post a loss of between 1.135 billion pounds and 1.175 billion pounds for its financial year ending in September.
This is the second major loss after losing more than £ 1 billion in 2020.
However, its loss for the three months to September 30, its fourth quarter, more than halved, meeting analysts' forecasts.
ACCOUNTS AS OF SEPTEMBER 30, 2021
As reported by Teleborsa , the group's total revenue and main costs for the fourth quarter of fiscal year 2021 (ending September 30) are expected to be approximately 1 billion pounds and approximately 1.14 billion pounds respectively.
RESERVATIONS SKETCHED
The low cost airline has announced an increase in bookings and capacity for the current quarter, which bodes well for a turning point from the difficult period of the pandemic. EasyJet carried 17.3 million passengers, equal to 58% of its capacity in 2019 against 17% in the third quarter.
"We are encouraged to see positive bookings momentum for fiscal year 2022, which has led us to increase our capacity plans for the first quarter, with the aim of flying up to 70% of 2019 levels," he said. commented the CEO Johan Lundgren.
WAITING FOR THE SLOW DOWN OF THE JOHNSON GOVERNMENT RESTRICTIONS
Performance was best on domestic intra-European and British routes , while demand for international routes from the UK continued to be impacted by UK government travel restrictions. Capacity is expected to reach 70% of 2019 levels in the current quarter (the first of fiscal 2022).
As the Financial Times points out , most of easyJet's business focuses on the UK market, where restrictions have been stricter than in mainland Europe for much of the year.
THE CAPITAL INCREASE
We also recall that last month easyJet launched a fundraising of 1.2 billion pounds to strengthen its finances, a larger capital increase than some shareholders and analysts expected.
The recapitalization made it possible to repay the debt at 900 million pounds from 2 billion pounds.
Lundgren said this will allow the airline to take advantage of "strategic investments and growth opportunities" during the recovery.
At the same time, the British airline turned down an offer to buy from Wizz Air, another low-cost airline based in Budapest, Hungary.
In addition, CEO Lundgren has rejected the potential threat from rival British Airways, which is considering the launch of a new low-cost branch at Gatwick Airport. “We have proven that we can compete with any airline,” he said.
NO DIVIDEND
Considering the expected loss, the board of directors will not recommend the payment of a dividend for the year until September 30, 2021.
AND EVEN GUIDANCE 2022
Finally, the group specifies that “given the persistent level of uncertainty in the short term, financial guidance for the year 2022 would not be appropriate”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-easyjet-barcolla-in-borsa/ on Tue, 12 Oct 2021 11:29:42 +0000.