Easyjet Share Discussion Threads

[sapphireblue1] 23/7/2024 07:24

I still can't get my head around the thought process of cutting prices to a point where it's not commercially viable.
I can honestly say that I have never randomly looked through an airline website and taken a flight just because it's a bit cheaper than it should be. The flight cost is almost insignificant compared to the cost of airport parking, the cab to the airport, a tank of petrol, accomodation, transfer to your hotel or a meal out with a couple of decent bottles.
The fact is that Ryanair are so focused on headline price and extras that they don't understand what people want.
Convenience, confidence and reliability. They want to leave from their nearest and easily accessed airport. They want to feel confident that as a customer they are valued and looked after. They want the process to be as slick as possible, booking, airport and flight
Price is way down the list and people pay what it is within reason.
I don't understand the mentality of ryanair. Clearly they are losing market share and I can see why.

[trying2trade] 23/7/2024 07:12

Come off it please. TUI use TUI, wet lease in capacity and uses a variety of operators (none being EZY) for destinations not served by their fleet. This board is one of the worst on the whole platform for confirmation bias towards a stock.

[philmac56] 23/7/2024 06:53

Let's not forget that TUI use easyJet for their choice of flight also

[sapphireblue1] 22/7/2024 20:44

The logic escapes me. Why drop the price. If people want to travel they will travel. I think that they have made a poor decision. Easyjet have not slashed prices. People pay for convenience. The local airport and a convenient travel time.
To illustrate I was speaking to a couple from Northampton tonight. They flew easyjet yesterday from Birmingham. There were 2 empty seats.
Last year they came to us in Mijas Costa but a different hotel. Last year they flew ryanair from Luton as there was only a choice of Ryan or easy. They picked Ryan.
This year they went to Birmingham and said that although there's little difference in distance parking at Birmingham is cheaper and the airport is much better.
Nothing to do with easyJet it was just easier for them. I asked about price and they admitted that Birmingham was a bit more but it suited them. They are on an easyJet holiday, last year they booked directly with us on our website.
They made the swap for the end to end service with transfer.
Easyjet holidays is the big win

[foreverbull] 22/7/2024 17:46

Cheers. They've 50% accuracy this year ... so it's like flipping a coin

[foreverbull] 22/7/2024 17:43

Key questions or things to consider from below are(1) poor forecasting from Ryanair... Will see how accurate EasyJet are(2) Ryan seems to have surplus capacity which forced them to reduce prices

[blueball] 22/7/2024 17:42

stay in cash.

[foreverbull] 22/7/2024 17:41

A few interesting points and remarks:(1) Ticket prices fell 15pc in the three months to June after Michael O'Leary, the chief executive, was forced into a series of sales in order to fill the company's 500 planes.(2) Ticket prices fell 15pc in the three months to June after Michael O'Leary, the chief executive, was forced into a series of sales in order to fill the company's 500 planes.(3) The Irish carrier's poor forecast hit airline shares across Europe, with FTSE 100 low-cost airline EasyJet dropping 7.2pc.(4) Ryanair said that continuing issues with the supply of aircraft from Boeing and Airbus will act as a brake on capacity and help bolster prices going into the end of the year.

[foreverbull] 22/7/2024 17:39

From The Telegraph Ryanair's attempt to attract frugal holidaymakers by slashing summer fares has hit profits and sent the company's shares tumbling.Ticket prices fell 15pc in the three months to June after Michael O'Leary, the chief executive, was forced into a series of sales in order to fill the company's 500 planes.The move helped boost passenger numbers 10pc during the quarter, but came at a cost.Profit fell 46pc from a year earlier dropping to €360m (£303m). The company's shares plunged 13pc as trading began after it warned that fares will remain materially lower for the rest of the summer as it battles to win passengers.Finance chief Neil Sorahan said that Ryanair has struggled to make higher fares stick after it lifted prices more than 20pc last year.Mr Sorahan said: "There's no shortage of demand, in fact it's as strong as I've ever seen it. But people are being more cautious about what they do with their money."They are happy to spend and they're travelling in numbers. They're just a bit more frugal and they're taking a bit of a breath."Mr Sorahan said that while Ryanair's objective is always to fill the plane, it's not having to resort to the deep discounting of the past, when it would advertise tickets at £9.99.Fares promotions are now priced at £19.99 or £29.99, with the average fare at around £49, £7 higher than before Covid.The Irish carrier's poor forecast hit airline shares across Europe, with FTSE 100 low-cost airline EasyJet dropping 7.2pc.Hungarian airline Wizz Air, another discount carrier and a member of the FTSE 250, plunged 8.7pc.Ryanair said that continuing issues with the supply of aircraft from Boeing and Airbus will act as a brake on capacity and help bolster prices going into the end of the year.Consolidation among European carriers including Lufthansa's takeover of the biggest Italian airline and British Airways owner IAG's bid for Spanish leisure carrier Air Europa will also push up fares, it predicts.

[sapphireblue1] 22/7/2024 15:37

I only book Ryanair if I have no choice. I don't think that I am alone. As easyJet are adding new routes and destinations whilst adding volume and new bases those lone ryanair routes become less.
Price is not the main factor. Given the cost of transport within the UK departure airport is the first priority

[amt] 22/7/2024 14:44

Passengers moving from Ryanair to Easyjet. If you had the choice of
Flight it's a no brainer who you would fly with.

[sapphireblue1] 22/7/2024 14:37

O'Leary is a big baby trying to deflect the attention away from ryanair failings. He did the same recently when he said about airbus fleets being grounded to deflect upon their poor decision with Boeing.
Just like a child blaming someone else.
6 weeks into Q3 easyjet reported ahead of last year, I don't think that will change.
Just booking the Málaga half marathon in March for a team of 8 from London. £210 return each in March 25. Looks strong to me.
Now if they book the easyJet holidays package they get flights and accommodation £605 for 6 days. Flights are now £262 for the same flight. Ryanair can't do that.

[noramping] 22/7/2024 14:06

Due to recent announcements I think EZJ is not immune to markets conditions and other players in the market having issues, my bet is the next update will see the share price drop further.

I would be happy to be wrong

[onehanded] 22/7/2024 12:55

Bound to retrace to £4.80 mark but to break £5 will need a steady update.

[sapphireblue1] 22/7/2024 12:48

My 4th buy for today totaling a little over £20k. Happy just to take these at this nonsense level. Easyjet now makes up 20% of my portfolio which is very comfortable.
Lets see if Easyjet really are pulling away from ryanair. I believe that they are and much like the nonsense about all the airlines having aircraft supply issues Ryanair are just trying to muddy the water

[kktj] 22/7/2024 12:33

The only notifiable short interest is from Qube Research & Technologies Limited who reduced to 0.67% on the 18th (bad timing!)

Also when you talk about single digit loses, I assume you mean in % and not £!

[sapphireblue1] 22/7/2024 12:15

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 11:51

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

[chriss911911] 22/7/2024 11:40

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 11:25

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 11:22

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 11:11

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 11:02

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.