Easyjet Share Discussion Threads

[tlobs2] 21/9/2017 10:19

Liberum have been consistently wrong on Easyjet for over twelve months now.

[penycae] 21/9/2017 09:50

amt - just like to wish you all the best in your exchange of views.
Liberum has a sell recommendation on EZJ with a price target of £11.00.

[quepassa] 21/9/2017 08:21

What £250 return to New York?

That is a Trans-Atlantic graveyard strategy for airlines. Norwegian can't make it work in my view. - Not sure that's a good tie-up for any airline.

South Terminal at Gatwick which is of 3rd World stature, Terminal 1 at JFK is like a 1960's time-warp, enormous snaking queues everywhere for check-in and security . Flights which take significantly longer than others because they fly higher and slower to save on fuel.

Not good.

ALL IMO. DYOR.
QP

[amt] 21/9/2017 08:12

QP There is a shortage of pilots because the market is growing fast which makes my point I think. So if I was a pilot I would realise that and demand better pay. Its all about supply and demand.

[amt] 21/9/2017 08:08

tiobs Yes I realise that I was referring to impact on peoples wealth of Brexit which could be very bad, not much or very good. Nobody knows.
If I knew the answer and it was positive or same as now I would be buying more Easyjet and Ryanair shares but the risk of a bad outcome is holding me back.

[quepassa] 21/9/2017 08:02

Different views make the market.

Have you read the Page 19 article in today's FT headed "Improving staff relations is urgent task for RyanAir"?

The market has not yet looked at or factored into the equation THE QUALITY and DURABILITY of the passenger base which the low-cost sector has attracted in The Price War.

When seat prices start going up as they eventually must, a significant proportion of the newly found low-income passenger demographic attracted by the seat give-away during the Price War will melt away.

ALL IMO. DYOR.
QP

[tlobs2] 21/9/2017 08:01

Amt, I think EasyJet have pre-empted all the Brexit outcomes by opening a new European headquarters in Austria.

They are currently in a very strong position (IMHO) with a good brand, month on month of increased customer numbers and load rates, new larger aircraft on order oh and one of their main rivals (Ryanair) shooting themselves in the foot !

[amt] 21/9/2017 07:51

QP We are obviously not going to agree. We will only know who was correct in say a couple of years time. The only thing that could derail my optimism is if Brexit goes wrong. I dont believe anyone knows what the outcome will be. If it goes wrong then with the huge Government borrowings the pound could collapse and the country go bankrupt like in the 1970s then clearly it would be very bad for Easyjet and other carriers. If Brexit goes well and red tape of EU is slashed and flexible labour market maintained then Easyjet would boom as peoples wealth rises. It could be a muddled outcome with a slow decline in UK economy.
Nobody knows.
However if status quo continues Easyjet are perfectly positioned to continue expanding into this high growth market.

[quepassa] 21/9/2017 07:37

Disagree on all counts.

Yes, Air Berlin did fail because of the Price War. Nothing else.

The debacle with pilots at RyanAir goes to the heart of the matter. It's all about working conditions, pay, retaining staff and cutting costs so much that they don't have enough stand-by pilots because pilots have become so disenchanted they are leaving for other carriers. It boils down to money.

The yields on seats have fallen dramatically and that is why the whole industry is madly doing all it can to make money on ancillary businesses and branching out into new products to try and shore up profitability.

What is going to happen now in my view is that RyanAir will be forced to raise its prices. Others will follow.

You may think this is good but with the massive overcapacity in the sector, passenger numbers will decline, load factors will deteriorate as the FALSE DEMAND created by opportunistic low-income travellers drops.

It's a bad outlook all round.

Compounded for airlines in my opinion which are UK airlines and which are going to be caught by the ugly ongoing Brexit divorce talks.

ALL IMO. DYOR.
QP

[amt] 21/9/2017 07:16

QP Air Berlin went bust because they were not in the same league as Easyjet and Rynair as regards market share and efficiency, nothing to do with over capacity. They couldnt compete with Ryanair and Easyjet.
Ryanair and Easyjet have always had very low prices and cutting the competition off at the knees and expand market share.
The market is growing and Easyjet and Ryanair are expanding.
Longerterm both Easyjet and Ryanair are perfectly positioned to capitalise for the insatiable demand for travel which will be enhanced by the recovery in European economies which is gathering pace.
Easyjet have never filled their seats to the current level before and have record number of passengers which contradicts your downbeat thoughts.
Ryanair have problems because it seems they dont have enough staff to meet the demand.

[mastey] 20/9/2017 19:28

Don't place poker with Draghi. Brilliant player

[chiefbrody] 19/9/2017 12:49

Ryanair is such a huge Behemoth these days, it's just a drop in the ocean.Over 100M passengers a year. So a few might get disgruntled. That'll pass the next time a £40 return flight to Spain crops up.No harm in EZJ picking a few of Ryanair's crumbs up mind but it won't be material.

[tlobs2] 19/9/2017 12:41

Ryanair are getting more bad publicity on Radio Two at the moment. It doesn't sound very good for them at all.

[rathlindri] 19/9/2017 10:36

Arrogant little man

[tlobs2] 19/9/2017 08:52

Ryanair has written to 400,000 passengers to tell them that their flight has been cancelled after it admitted to a “mess-up”; on pilot rostering that left 18 million ticket holders wondering if their holiday plans would be ruined.

In a hastily arranged press conference in Dublin on Monday afternoon amid a passenger revolt and a slump in the company’s share price, the normally combative chief executive Michael O’Leary apologised “unreservedly” for “a mess of our own making”.

O’Leary blamed a one-off holiday pilot rostering issue, which if not tackled immediately would send the airline’s on-time punctuality below 50%, adding that it will cost Ryanair about €25m (£22m) in compensation payouts and other costs.

But in a flash of the arrogance for which he is better known, O’Leary said that travellers vowing never to fly Ryanair again will almost certainly return to the airline because its prices are lower. “Our booking engine is full of passengers who have sworn they will never fly with us again,” he said.




How wrong O'Leary is. Once you have been let down in such a manner you never return.

[calabrian] 19/9/2017 08:43

Monarch 'restructuring' again ;) and when is their ATOL license up for renewal? Ryanair an airline for passengers who only care about price? Why anyone wants to give their money to MOL is a mystery. Air Berlin, Auf Wiedersehen! Thomas Cook suffering from strikes.Easyjet soon to carry 100 million passengers a year. Long haul relationship starting.Best of the bunch, yes.

[tlobs2] 19/9/2017 07:09

It doesn't matter what price airline offer seats for. If you don't trust them you wont book with them particularly if you are making a booking for your whole family.


So well done Ryanair, you have made the EasyJet option so much easier to consider. EasyJet will certainly need to increase capacity again in the near future.


Sometimes it's not all about price. Thankfully :-)


Not that our resident muppet QuePassa will understand this ..........

[amt] 19/9/2017 06:57

QP I dont understand why you say there is massive overcapacity. Easyjet are filling their planes more than ever. Uncompetetive airlines are in trouble which bodes well for Easyjet. Ryanair have messed up. Fuel prices are stable at much lower levels than a few years ago. Brexit is having little impact on the UK economy. The outlook could hardly be much rosier.

[nick100] 18/9/2017 15:51

LONDON, September 18 (Fitch) The partnership between Norwegian Air Shuttle (NAS) and easyJet shows the low-cost business model is gaining momentum in European long haul, Fitch Ratings says. This could eventually lead to similar transformational changes to European network carriers' long-haul markets as it did to short haul. We do not expect near-term rating actions for affected airlines but the sector landscape and financial standing of companies may be significantly affected in the long term.

While NAS is developing low-cost operations on both short and long haul, easyJet and Ryanair are indirectly gaining access to long haul through partnerships. easyJet's short-haul passengers will be able to use a virtual platform to self-connect to flights with several partners, including NAS's mainly transatlantic long-haul flights. The service will start at London Gatwick and is planned to expand to other European airports. Similarly, in May Ryanair announced that passengers can book Air Europa's long-haul flights on Ryanair's website.

The focus on growth and scale is the key driver for these partnerships between low-cost carriers (LCCs). NAS and Air Europa want further traffic to establish sustainable scale in their long-haul operations, whereas both Ryanair and easyJet want access to long-haul connecting traffic to support growth as they have already secured strong positions on short haul. Few international long-haul destinations are large enough to generate sufficient traffic all year round. Therefore, connecting traffic is likely to be required to develop sustainable and sizeable operations.

Both partnerships in their current form will affect mostly North and Latin American destinations, which are lucrative for European network carriers. Among the three largest European network airlines IAG has the highest exposure to this region and therefore faces the greatest risk of long-term disruption. NAS's current operations on transatlantic routes are quite small compared to BA, but it intends to expand long haul rapidly from 12 aircraft in 2016 to 69 in 2019.

The use of new more cost-efficient aircraft including the Boeing 787 and 737 MAX will help drive the development of low-cost long-haul operations. But the low-cost model on long haul may have some limitations, and its profitability is uncertain.

[tlobs2] 17/9/2017 19:17

The Ryanair debacle and PR disaster will cost them tens of thousands of customers and EasyJet will be there to pick up the pieces :-)

[quepassa] 17/9/2017 11:01

Could it be the massive overcapacity in the whole sector which perhaps means that certain airlines just can't fill their planes at seat prices on certain routes which make starting the engines worthwhile any more?

Seems to me that if any airline was making good money on given flights, it would find a way to staff those flights.

The deleterious Price War caused by overcapacity continues to cause financial pain, injury, damage and dislocation to all participants in the short-haul sector and as a result sometimes even severe self-inflicted damage.

Some airlines like Air Berlin have already become major casualties of The Price War. Others may or may not now be suffering from corporate trench foot from engaging too long in this unforgiving Price War, others nearing the ranks of the corporate walking-wounded.

ALL IMO. DYOR.
QP