Easyjet Share Discussion Threads

[sapphireblue1] 22/7/2024 13:15

Customer cash paid in advance for bookings is not in the equation. That's not how this works.
Profit from this year after dividends and tax will be £400m+ and that is being realised everyday as profit in this quarter. It's quite reasonable to think that they can if they choose make a nominal investment in their own shares. That's assuming they see them as undervalued.

[ny boy] 22/7/2024 12:51

Avoid the sector the recovery party, post covid is long over

[chriss911911] 22/7/2024 12:40

Cashed up ? customer cash yes, not cash they should be using for dividend and share buyback, the resumption of dividends was a surprise, and unwarranted, as losses persist at 0.3bn. Not sure holiday makers will be impressed with BOD spending their holiday cash on such gymnastics, whilst penny pinching on quality of holiday, after all the gap left post COVID that Easy Jet chose to enter, was not exactly high quality earnings as it was then, let alone now.

Debt is one thing, what you owe customers is also at least important, it rose 800m per their RNS interim update, that's a lot of extra holiday money paid up front by consumers for flights and holidays not yet taken, I'm delighted they have at least some left. I can see more chance to see a return to net debt, position with the inevitable excuse/time of year, blah, blah, blah, but the answer was there already, the cash position was not real, not cash they generated, they generated loss, it's just customer cash.

Price to fly, and holiday is still too high, has been industry wide calibrating to the problem, consumers will not fly or holiday as much, they can do it for bit, but not keep doing it, there is the problem, to find the cash to do it, it is just a lot less affordable than before, if the update from Ryanair is not warning enough, I don't know what is.


Shorter's are increasing stake, for a reason, I tend not to bet against them unless I have a world beater story to back and I don't see one, so see little upside and high risk to test the lows again.

[xamf] 22/7/2024 12:25

I am committed here too in the anticipation of solid Q3/Q4 results. Like you still single digit loss but happy to hold. Everyone will be focused on margins on Wed. Hopefully any possible discounting will be measured. Then again I'd be prepared to place a final tranche if we see sub 400. Hopefully not!

[sapphireblue1] 22/7/2024 12:22

Margins on the holiday bookings are 10 times those of the flight only. This is where you can't compare air-pikey and easyJet.
Holiday margins are robust, booking volume is robust and unlike all the others easyJet don't pay for empty rooms.

[xamf] 22/7/2024 12:11

Hmmm. That's true but I think the concern going forward will be focused on margins rather than revenue (which would be directly hit by tourism issues etc). We'll see. Anyway I thought you were bonkers at first but to be fair you've called this correctly so far. Well done.

[noramping] 22/7/2024 12:02

ZAMF, you may be right , but if EZJ follows in ryanairs footsteps with prices going down then it will hit the bottom line.

All these protests about tourism will have effect.

[xamf] 22/7/2024 11:41

Yes that's true. However I find that you can usually get a decent average price fairly close to the low if you weight your buy tranches. I still feel that this will be considerably higher in a year unless of course the margins are falling across the sector (as seems to be the case for Ryanair).

[noramping] 22/7/2024 11:37

It’s been lower so this may not be the bottom

As for cashed up 🤷

Results last year show “GBP41 million net cash” and since then they reported a £350m loss

[sapphireblue1] 22/7/2024 11:31

I don't know how low it would have to get before cashed up easyJet buys back their shares.
Surely they must be offended by the London stock exchange valuation given their commercial success.
Easyjet holidays is the growth engine. It's got huge headroom especially in the winter destinations.

[xamf] 22/7/2024 11:28

noramping. I appreciate your concern but I found it works to buy multiple batches where a stock is falling and the floor is uncertain. I always hold contingency funds for events like this but 15% would be my limit - still a risk though..

[onehanded] 22/7/2024 10:57

Could be a time to buy on a punt. Obviously the drop could be factored in for update with the other airline news. May see share buyback news and have £5 target soon. We will see.

[f0rl0rn] 22/7/2024 10:49

I am optimistic that this gap will be filled by Wednesday.

[halfpenny] 22/7/2024 10:47

Adding more ready for great results.

Booking has been full on my flights.

Happy Days with gains ahead..

[blueball] 22/7/2024 10:35

Big gap down today.

[noramping] 22/7/2024 10:27

XAMP, you keep buying whilst it’s dropping, I suggest all eggs in one basket with regards EZJ isn’t a good idea , like others have said if results coming up don’t meet the hype you might be buying again lower?

[xamf] 22/7/2024 10:13

Just topped up again. Hopefully Q3 update will be positive and Ryanair's loss will be Easyjet's gain.

[amt] 22/7/2024 10:00

Bad for Ryanair but good for Easy Jet

[sapphireblue1] 22/7/2024 09:25

At that point in May Ryanair were already talking of a tougher environment. They say for all airlines but I rather suspect that's like the aircraft supply issues affecting all airlines it's just wrong

[fitton] 22/7/2024 09:24

Could be an interesting few days.Easyjet already been hit with change of CEO.Ryanair down over 12% this morning.Easyjet down 7%.Ryanair results are now priced into Easyjet price.If Easyjet achieve above market estimate results then £5 could be on the cards.Lower than expected, could see the share price below £4.I think I'll be buying futures for March 25 if the share price falls below £4.I've considered Easyjet as a takeover target and further weakness could encourage a bid

[sapphireblue1] 22/7/2024 09:23

Yes the Q3 figures will be released on Wednesday.
Interesting on May 16th halfway through Q3 easyjet were ahead of last year and easyJet holidays well ahead.
I think that we'll see a clear separation between the ryanair performance and easyJet performance from these results.
Fact is that nobody will trust ryanair with their holidays. Certainly as a hotel group exec I wouldn't.

[vatteton] 22/7/2024 09:07

Trading Statement on Wednesday

[kktj] 22/7/2024 09:01

Amazing Ryan air doesn't get punished for the news but ezj does! I bet if ezj comes out with similar news it'll be doubly punished....