Easyjet Share Discussion Threads

[amt] 26/11/2018 16:31

As regards Brexit its looking more and more like a damage limitation exercise or even another referendum. Either way it's a very soft Brexit. That was always the risk of voting leave that it could go pear-shaped.

[amt] 23/11/2018 20:27

Well normal service resumed. Falling oil price helping the share price head in the right direction.

[tlobs2] 23/11/2018 11:30

Happy days.....

Oil prices declined for the second day in a row on Friday, hitting their lowest level in almost one year on the back of concerns over an increase in global supply.

:-)

Where are those doom mongers today then?

[yump] 23/11/2018 10:58

Actually yes, the most beneficial thing would just be a stable oil price. Unfortunately the state of the world doesn't seem to mean that's likely.

[amt] 22/11/2018 17:39

At last some sense in the share price Should be a good year especially if oil price stays where it is.

[bor491] 21/11/2018 15:39

how is that wizz air is up 5.83%, ryanair up 2.73% and easyjet at just 1.94%

did i miss anything yesterday - it was supposed to be a good trading update or not?

[amt] 21/11/2018 08:29

Exactly Plootocrat. Normally the share price is quite closely correlated to the oil price as it has such a big impact on costs. However all logic has left the market at the moment.

[plootocrat] 21/11/2018 08:00

"easyJet hedges forward, on a rolling basis, between 65% and 85% of the next 12 months' anticipated fuel and foreign currency exposures and between 45% and 65% of the following 12 months' anticipated exposures." So oil price changes of the magnitude we are seeing currently may well have a significant impact on profitability.

[sum493] 20/11/2018 22:59

price of oil doesn't matter as easyjet has hedged the fuel cost so rises/falls won't benefit or hurt easyjet...except perhaps if easyjet made another hedging arrangement for after 2020.

[amt] 20/11/2018 22:44

Another big fall in oil price tonight 6.7%.
The price is down more than a third from peak. If the price is maintained there should be large upgrades in profitability this year.
Pe ratio is just ten.

[tlobs2] 20/11/2018 14:06

Monty, if they can maintain the same levels of business over the coming months as others fail (or shoot themselves in the foot) then this will start a steady rise back up to 1400p as it has done in the past.

[bor491] 20/11/2018 14:00

I would buy more if i could but i don't want to increase my exposure further to a single share.

[montyhedge] 20/11/2018 13:56

tlobs
They were but are they the best they will get, with Brexit looming, no one knows whats going to happen.

[tlobs2] 20/11/2018 13:46

I am back in. I thought the results were excellent :-)

[montyhedge] 20/11/2018 12:52

I think investors may think this is the best it gets, good figures and dividend, but going forward with the uncertainty for all airlines, must be the forward looking statement. Don't forget traders always looking six months in advance.

[eentweedrie] 20/11/2018 12:33

main issue here is outlook for 2019/20 - not looking entirely rosy imo

[gorse] 20/11/2018 11:46

Hugo - the word economists uuse is complEmentary.

BTW I bought a few EZJ for the first time this morning - some for my wife and some for my nephew.

[hugothesecond] 20/11/2018 10:43

Why would EZY buy Flybe - very clear to me
Become number 1 airline in a selection of new complimentary airports
Strengthen number 1 or 2 position in existing airports
Secure LHR operation to routes already served on their network.
Allow higher yield with less competition
Deliver lower cost base than Flybe

[amt] 20/11/2018 09:20

I have doubled my stake this morning just for the income. Yield 5% plus

[bor491] 20/11/2018 09:08

its madness - another airline that i was invested in at $36 is now trading at $51 - Spirit Airlines (in the states)

[chiefbrody] 20/11/2018 09:06

Checking in. Disappointing to see this drop £5 in a few months.Solid results though, big big div increase (are you watching IAG).P/E circa 12-13 so little downside from hear.Will start adding again if/when the market has a other meltdown.

[bor491] 20/11/2018 09:05

it doesn't matter if there's a cliff edge really...

Brexit

Both the EU and the UK have said that their objective is to maintain flights between the EU and the UK, whatever the Brexit outcome. This gives easyJet confidence that flying rights will be maintained, and it continues to work with EU institutions, EU Member States and the UK to ensure that this is achieved.

easyJet has established easyJet Europe, which is headquartered in Vienna and will enable easyJet to continue to operate flights both across the EU and domestically within EU countries after the UK has left the EU regardless of the Brexit outcome. The new structure means that easyJet is now a pan-European airline group with three airlines based in Austria, Switzerland and the UK.

UK consumer demand remains strong, with bookings for next summer ahead of 2018.

In order to continue to operate air services within the EU, easyJet (and all other airlines with EU operating licences) must comply with the EU requirement that a majority of its equity capital must be owned and controlled by nationals of one of the member states of the EU, Switzerland, Norway, Iceland or Liechtenstein ('qualifying nationals').

With regards to its ownership easyJet is well prepared and begins from a position of strength with approximately 47% of its shares already held by qualifying nationals (excluding UK nationals). easyJet's investor relations programme has focused mainly on Europe since 2016 with the intention of increasing this to above 50% prior to the UK's exit from the EU.

easyJet's Articles of Association contain provisions to allow it to take action, if necessary, to ensure it continues to satisfy the EU ownership and control requirements. These provisions permit easyJet to regulate the level of ownership by non-qualifying nationals by suspending rights to attend and vote at meetings of shareholders and/or forcing the sale of shares owned by non-qualifying nationals to qualifying nationals. Similar powers exist in the articles of association of other airlines as well as in the articles of companies in other sectors that have national share ownership requirements.

Whilst easyJet has no current intention of exercising these powers, the position will be kept under review pending the outcome of Brexit negotiations between the UK and the EU, along with other options.

Currently, approximately 47% of easyJet's equity capital is held by qualifying nationals, if UK nationals are excluded, and therefore approximately 53% by non-qualifying nationals. Consequently, if no withdrawal agreement is agreed or approved, and there is therefore no transition period, it may become necessary for those powers to be exercised, and/or for other actions to be taken to reduce the proportion of non-qualifying nationals owning easyJet shares, in advance of Brexit on 29 March 2019 so as to be compliant with the relevant EU requirement.

easyJet currently expects to take action in respect of its level of ownership by non-qualifying nationals only if there is a real risk of a 'no-deal' Brexit in the run up to 29 March 2019 and if the proportion of equity capital held by qualifying nationals (excluding UK nationals) remains below the required level of 50% plus 1 share. If the EU and the UK reach agreement on the terms of withdrawal, and a transition period is agreed, it is not anticipated that any action would be required in respect of the level of ownership by non-qualifying nationals until at least the later stages of the Brexit transition period (which is expected to end no earlier than 31 December 2020). easyJet continues to monitor developments but currently considers it would be inappropriate to commit to a set plan whilst the Brexit outcome remains uncertain. easyJet will provide a further update as appropriate in due course.

[cashandcard] 20/11/2018 09:04

These figures are solid. Very strong performance and shows the integration of prized parts of other (failing) airlines is a good strategy. I've always admired the fact they paying a regular divi here, which RYA do not. I also detest the RYA model of flying to airports in the middle of nowhere.


Cash

[amt] 20/11/2018 09:00

There is no chance of a cliff edge. In practice the UK will just agree to extend membership and EU will agree while negotiations continue. The worry is about a longer term decline but that will take years to become apparent. We are already about 20% worse off since the Brexit vote due to currency decline but nobody seems to realise that yet.