|Bid||1,465.50 x 0|
|Ask||1,466.50 x 0|
|Day's range||1,451.50 - 1,557.50|
|52-week range||840.00 - 1,557.50|
|Beta (5Y Monthly)||0.91|
|PE ratio (TTM)||16.74|
|Earnings date||19 Nov 2019|
|Forward dividend & yield||0.44 (3.22%)|
|1y target est||1,479.74|
Ever since the UK voted to leave the European Union in the June 2016 referendum, the country has been in a state of paralysis. That looks to be over now thanks to a thumping win in the general election for Prime Minister Boris Johnson and his ruling Conservative Party. It seems certain now that the […]
(Bloomberg Opinion) -- Michael O’Leary of Ryanair Holdings Plc is an unlikely spokesman for how aviation can avoid killing the planet. The budget travel evangelist has delighted in disparaging “eco-warriors” and casting doubt on climate science. But as chairman of the European airline association, A4E, he’s now front and center of the effort to persuade governments not to impose new climate taxes on the industry. It’s not going well.This week the European Commission’s president Ursula von der Leyen unveiled a plan to make the continent carbon neutral by 2050. Her Green Deal is still thin on detail, but it’s already prompted plenty of criticism — from the green groups who say it doesn’t go far enough to the big polluters who fear it will harm their competitiveness, such as coal-dependent Poland and the airlines.One aim of the Green Deal is to make the price of transport “reflect the impact it has on the environment.” Accordingly, Europe will review aviation’s tax exemptions — kerosene isn’t taxed — and consider cutting the free allowances allocated to airlines under Europe’s emissions trading system.The airlines think they’re being unfairly maligned. They contribute about 2% of global emissions, a fraction of what cars and trucks produce. But unlike road transport, the aviation industry doesn’t have a convincing plan to decarbonize. Europe’s airlines are spending 170 billion euros ($189 billion) on new fuel-efficient aircraft, but these will still spew out carbon. Synthetic fuels are expensive and battery limitations mean emission-free commercial flights are years away.Aviation is typical of the trade-offs we’ll have to make to get to net-zero emissions. So far we’ve only done the easy stuff that doesn’t force people to give up much or pay more for cheap products and services. The airlines are lobbying for better air traffic management in Europe’s crowded skies, which would cut the amount of fuel used. But there’s only a certain amount of carbon we can keep emitting before things go from bad to catastrophic.The question of who will have to cut back most on their polluting raises issues around economic growth and fairness: The top 10% of most frequent fliers took more than half of all flights from England last year, while almost half the population don’t fly at all. Airlines don’t even agree among themselves about whether to punish the business lounge elite or the weekend City breakers. IATA, the airline trade body, boasted this week that more than 4.5 billion passengers will take a flight this year as tickets become ever cheaper. The average return fare, adjusted for inflation and taxes, is almost two-thirds lower than it was 20 years ago. “Flying is freedom,” Iata’s Alexandre de Juniac intoned.But even flying fanatics are no longer convinced that its growth should be unconstrained. Over-tourism in the Mediterranean has brought this to wider attention. When the environmental impact of a business isn’t priced in, there can be such a thing as too much freedom. Ryanair makes the reasonable point that aviation taxes are a levy on the poor. Making flights more expensive will hurt those for whom 20 euros in new taxes, say, is the difference between flying and staying home. It’s fine to encourage people to take a train, but rail fares are often higher, and decent services are concentrated in richer European countries. A similar debate is raging in the car industry, where the cost of electric batteries could make small cars — often bought by the young and elderly — uneconomical.Hence the budget airline Wizz Air Holdings Plc struck a nerve with a video that calls for the business class cabins of its big legacy rivals to be banned.(2) “We think you’re doing great… harm to our planet… Are all those empty seats worth the damage they cause?” the narrator asks.Wizz is, of course, talking its own book; it doesn’t offer business class. But in a carbon-constrained world, abolishing business and first class isn’t so outlandish. Because of their ability to sell out flights and cram passengers on-board, Wizz and Ryanair are Europe’s two most efficient airlines when measured on CO2 per passenger km traveled.Naturally, the older carriers don’t see it that way. Ryanair’s promotion of tickets that cost less than 10 euros is “economically, ecologically and politically irresponsible,” according to the Lufthansa chief executive officer Carsten Spohr. KLM of the Netherlands is even encouraging consumers not to fly if they don’t have to.The airlines still hope to find a way out of the impasse. EasyJet Plc will offset the carbon produced by all its flights, for example by paying to plant trees. That will cost the airline just 25 million pounds a year, equivalent to about 26 pence per passenger or 3 pounds per ton of carbon produced. But such measures haven’t always delivered the promised benefits and have been likened to the old Catholic practice of selling indulgences. While the price of European carbon permits has risen above 20 euros a ton, that’s probably too low to really affect ticket prices or encourage the use of expensive synthetic fuels. In 2019 Ryanair paid 115 million euros for emission allowances, or less than 1 euro per passenger.(1) The Green Deal is billed as a “growth strategy” but nobody should pretend this won’t involve hard decisions. The noisy complaints are an industry realizing its license to expand and pollute is being revoked.(1) On flights lasting less than five hours(2) If you include air passenger duty, it claims the total for environment taxes is about 4 euros per passenger.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Ryanair's outgoing chief operations officer Peter Bellew considered himself a "dead man walking" after a March performance review and resigned after being ordered to work at the airline's Austrian business, he said on Thursday. Bellew was speaking in court during a case brought by Ryanair to delay him joining rival easyJet for 12 months until 2021. Ryanair has said Bellew possesses information of competitive value covered by a non-compete clause.
Holiday company TUI Group said the grounding of its Boeing 737 MAX planes would continue to drag on profits, with a hit of up to 400 million euros possible in its 2020 financial year if the jet does not come back into service by May. The company, whose main rival Thomas Cook went out of business in September, said on Wednesday that earnings forecasts for the 12 months to end-September 2020 assumed a 130 million euro hit from the grounding.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of easyJet plc (LON:EZJ...
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Leading airlines attacked European Union plans to impose a region-wide kerosene tax as part of a sweeping new environmental strategy, saying investment in sustainable fuels and electric planes would be more effective in reducing carbon emissions.Chiefs of four of the region’s five biggest carriers raised their concerns with EU Transport Commissioner Adina-Ioana Valean in Brussels Tuesday, with Ryanair Holdings Plc’s Michael O’Leary leading criticism of measures set to be unveiled in the so-called Green Deal package this week.Higher duties will do nothing for the environment while reaping “untold economic damage,” O’Leary said, describing the policy as a government tax grab “dreamt up here in Brussels or designed by cyclists in Holland.” He spoke after meeting with Valean as chairman of the Airlines for Europe lobby group alongside the heads of Deutsche Lufthansa AG, IAG SA and EasyJet Plc.Airlines are pushing back against the kerosene levy as the EU moves to overhaul energy-taxation laws unchanged since 2003 as part of a commitment to reducing greenhouse-gas emissions to net zero by mid-century. Aviation finds itself in the firing line as the auto industry and other sectors make strides toward slashing CO2 output, and with many fuels long subject to taxes.A4E said in a statement that an incentive-based system coupled with increased investment in sustainable fuels would be a more positive way forward, together with an acceleration of the Single European Sky project, which it estimates would by itself cuts carbon emissions by 10%.O’Leary said that plan -- which would reform complex air traffic control systems -- must be implemented if Europe is at all serious about tackling the issue. A purely tax-based approach would be damaging not just for airlines but tourism-based economies in the region, he said.Flying BoomWhile aviation currently accounts for only about 2% of all man-made carbon discharges, emissions have more than doubled since 1990 as a burgeoning global middle class stokes a boom in flights.“We have to deliver growth in Europe in a sustainable manner,” O’Leary said. “Taxation will defeat that purpose. It takes the money away we need to invest in new aircraft.” A4E members alone are spending 170 billion euros ($188 billion) on planes that typically burn 18% less fuel and carry 4% more passengers, he said.O’Leary said the industry must speak as one on CO2, while telling Bloomberg TV that passengers switching to Ryanair from “naughtier competitors” can cut their carbon footprint by 50%. The company has previously clashed with Lufthansa over the issue, with the German airline criticizing discounters for encouraging unnecessary journeys and the Irishman saying an aging fleet makes its rival one of the worst polluters in Europe.International Air Transport Association CEO Alexandre de Juniac said earlier in Madrid that carriers want to be part of the Green Deal but that “taxes are a politician’s way out” and less effective than a long-term approach requiring more time and effort. Governments and oil companies also need to play a greater role in making sustainable aviation fuels a commercial reality, he said.The United Nations says airlines are set to overtake power generation as the single biggest CO2 producer within three decades, assuming other sectors build on moves to transition to alternative technologies such as electric cars.Aviation’s scope for change is limited by the inability of today’s batteries to match jet fuel, which has 50 times the power density, meaning even small hybrid and electric airliners probably won’t be viable for more than a decade. Airbus SE says it could potentially build an emission-free 100-seater by the 2030s, while Boeing Co. aims to halve CO2 output by 2050 from 2005 levels.In the meantime, airlines are taking a two-pronged approach to cleaning up their acts, extending the use of CO2 offsets like tree planting while also embracing more sustainable propellants, such as kerosene blended with fuel from biomass and synthetic alternatives derived from carbon dioxide and monoxide together with hydrogen extracted from water.While such fuels aren’t yet financially competitive with kerosene, industry estimates suggest they should become viable once production reaches around 2% of all jet fuel use, something that maybe be attainable by 2025.(Updates with O’Leary comments starting in third paragraph.)\--With assistance from Siddharth Philip.To contact the reporters on this story: Lyubov Pronina in Brussels at firstname.lastname@example.org;Vonnie Quinn in New York at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Christopher Jasper, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
German airline Condor plans to more than double its operating profit margin, its chief executive said, hoping to lure in potential investors that will take it over following the collapse of its parent Thomas Cook. Condor, which filed for investor protection proceedings - which require that a business can still be saved - made adjusted earnings before interest and tax (EBIT) of 57 million euros ($63 million) in the last fiscal year. Its adjusted EBIT margin stood at about 3.4%, compared with 7.9% at larger rival Lufthansa.
Shares in EasyJet (LON:EZJ) are currently trading close to a 52 week high, with the share price up by around 2.46% to 1358.5p over the past week. On a one-mont8230;
Ryanair chief executive Michael O'Leary on Wednesday dismissed accusations that he bullied and forced out his former operations chief Peter Bellew, telling a court he was a highly paid professional who had failed to deliver. Bellew resigned as Ryanair Chief Operations Officer in July and the Irish low-cost carrier, Europe's largest, has asked the Irish High Court to delay his departure to arch-rival easyJet , saying he is subject to a 12-month non-compete clause. Former Malaysia Airlines boss Bellew denies he is subject to the clause and plans to start working with the British airline at the start of next year.
Low-cost airline Ryanair trimmed its passenger traffic forecast on Wednesday, saying it would cut summer capacity and an unspecified number of jobs as a result of further delays in returning Boeing's grounded 737 Max aircraft to service. Ryanair has scrapped planned summer operations from bases in Nuremberg and Stockholm Skavsta, as well as some flights from other bases, "solely due to delivery delays" to MAX jets on order from Boeing, the company said in a statement. "We are continuing to work with Boeing, our people, our unions and our affected airports to minimise these capacity cuts and job losses," Ryanair added.
Ryanair launched a bid in Ireland's High Court on Tuesday to prevent operations chief Peter Bellew from joining arch-rival easyJet until 2021, saying he possessed information of immense competitive value and that he had signed a non-compete clause. Europe's biggest budget airline said in July that the former Malaysia Airlines boss, who denies that he is bound by such a clause, would step down at the end of the year.
(Bloomberg) -- The European Union is gearing up for the world’s most ambitious push against climate change with a radical overhaul of its economy.At a summit in Brussels next week, EU leaders will commit to cutting net greenhouse-gas emissions to zero by 2050, according to a draft of their joint statement for the Dec. 12-13 meeting. To meet this target, the EU will promise more green investment and adjust all of its policy making accordingly.“If our common goal is to be a climate-neutral continent in 2050, we have to act now,” Ursula von der Leyen, president of the European Commission, told a United Nations climate conference on Monday. “It’s a generational transition we have to go through.”The commission, the EU’s regulatory arm, will have the job of drafting the rules that would transform the European economy once national leaders have signed off on the climate goals for 2050. The wording of the first draft summit communique, which may still change, reflects an initial set of ideas to be floated by the commission on the eve of the leaders’ gathering.The EU plan, set to be approved as the high-profile United Nations summit in Madrid winds up, would put the bloc ahead of other major emitters. Countries including China, India and Japan have yet to translate voluntary pledges under the 2015 Paris climate accord into binding national measures. U.S. President Donald Trump has said he’ll pull the U.S. out of the Paris agreement.In a pitch of her Green Deal to member states and the European Parliament on Dec. 11, von der Leyen is set to promise a set of measures to reach the net-zero emissions target, affecting sectors from agriculture to energy production. It will include a thorough analysis on how to toughen the current 40% goal to reduce emissions by 2030 to 50% or even 55%, according to an EU document obtained by Bloomberg News.Make It IrreversibleIn the next step, the commission will propose an EU law in March that would “make the transition to climate neutrality irreversible,” von der Leyen told the UN meeting. She said the measure will include “a farm-to-fork strategy and a biodiversity strategy” and will extend the scope of emissions trading.The EU Emissions Trading System is the world’s largest cap-and-trade market for greenhouse gases. It imposes pollution caps on around 12,000 facilities in sectors from refining to cement production, including Royal Dutch Shell Plc and BASF SE. Von der Leyen eyes the inclusion of road transport into the market and cutting the number of free emission permits for airlines.Some of the transportation industry’s biggest polluters have already stepped up efforts to reduce their environmental impact. In June, France’s Airbus SE, its U.S. rival Boeing Co. and other aviation companies pledged to reduce net CO2 emissions by half in 2050 compared with 2005 levels. EasyJet Plc, the U.K.-based discount airline, has promised to offset all of its carbon emissions by planting trees and supporting solar-energy projects, while Air France will take similar steps on its domestic routes.Germany’s Volkswagen AG, the world’s largest automaker, aims to become CO2 neutral by 2050, while Daimler AG plans to reach that target for its Mercedes-Benz luxury car lineup by 2039.To ensure that coal-reliant Poland doesn’t veto the climate goals next week, EU leaders will pledge an “enabling framework” that will include financial support, according to the document, dated Dec. 2. The commission has estimated that additional investment on energy and infrastructure of as much as 290 billion euros a year may be required after 2030 to meet the targets.The EU leaders will also debate the bloc’s next long-term budget next week. The current proposal would commit at least $300 billion in public funds for climate initiatives, or at least a quarter of the bloc’s entire budget for the period between 2021 and 2027.(Updates with details on draft sumit communique from fourth paragraph.)\--With assistance from Ania Nussbaum, Siddharth Philip and Christoph Rauwald.To contact the reporters on this story: Ewa Krukowska in Brussels at email@example.com;Nikos Chrysoloras in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Chad Thomas at email@example.com, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Ryanair launched a bid in Ireland's High Court on Tuesday to prevent operations chief Peter Bellew from joining arch-rival easyJet until 2021, saying he possessed information of immense competitive value and that he had signed a non-compete clause. Europe's biggest budget airline said in July that the former Malaysia Airlines boss, who denies that he is bound by such a clause, would step down at the end of the year. On the opening day of the case, a lawyer representing Ryanair listed information he said the airline could not allow to be passed to its rival, including details of delays to the delivery of Boeing's grounded 737 MAX aircraft as well the terms of deals Ryanair has signed with partners.
(Bloomberg) -- EasyJet Plc is set to return to Britain’s benchmark FTSE 100 index six months after the budget carrier was demoted, the benchmark compiler said.The airline will replace specialist insurer Hiscox Ltd., which will be relegated to the FTSE 250, according to a statement from FTSE Russell. The index review will be based on closing prices on Tuesday and the final announcement will be made after the market close on Wednesday, FTSE Russell said.Luton, England-based EasyJet suffered in the first half of 2019 as investors reacted to its cautious outlook and as the U.K.’s faltering attempts to leave the European Union weighed on demand for air travel. But it stabilized in recent months and jumped in October when it said earnings would hit the top end of its guidance as strikes at rival airlines drove customers onto its aircraft.Bermuda-incorporated Hiscox suffered a hefty slide following its third-quarter earnings in November. Brokers cut their ratings after the report raised concerns about a turnaround in the group’s retail unit and materially higher catastrophe costs in 2019. It has been a FTSE 100 constituent for a year.FTSE 100 membership is coveted not just in terms of prestige, but because it brings investment from funds that follow the index.Joining Hiscox in the FTSE 250 will be joined by Irish cider maker C&C Group Plc, which canceled its Dublin listing in September to leave it with only London-traded shares, and African phone towers owner Helios Towers Plc, which listed in London in October. Just Group Plc also joins the gauge.To contact the reporter on this story: Sam Unsted in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Jon Menon, Blaise RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomas Cook's German airline Condor has drawn substantial interest from potential suitors, the group said on Tuesday, two months after its parent collapsed. Unlike Thomas Cook, Condor received a lifeline from Germany in the form of a 380 million euro ($419 million) bridging loan and filed for investor protection proceedings, which requires that a company is not yet insolvent and can be saved. Condor has remained profitable but signalled that an ownership change was likely, adding it was open to interest from rivals and private equity.
Investors in easyJet plc (LON:EZJ) had a good week, as its shares rose 3.5% to close at UK£13.48 following the release...
Loss-making Norwegian Air has appointed Jacob Schram as chief executive to take charge of the budget carrier's restructuring as it struggles with a low-cost, long-haul model in an overcrowded industry. Schram, who does not have a background in aviation, joins Norwegian from management consulting company McKinsey and was previously a top executive in the petrol retail industry, Norwegian's board said on Wednesday.
Carbon offsetting, already a multi-billion dollar industry, will get a major boost from the launch of an international scheme to offset aviation emissions, called CORSIA, in 2021. Aviation already accounts for some 2% of global greenhouse gas emissions and green groups have accused the sector of using offsets to try to buy out of the problem cheaply. Carbon offset schemes involve compensating for emissions of the gases which cause global warming by paying for emissions cuts elsewhere.
EasyJet's pledge to offset its carbon emissions isn't the end of its efforts to clean up its act, the budget airline's chief executive said, adding it will look into hybrid and electric planes amid criticism the aviation sector isn't doing enough. On Tuesday, easyJet said it would become the first major airline to achieve net-zero carbon emissions across its whole network through offsetting of its flights. The aviation industry accounts for over 2% of global greenhouse gas emissions, and if left unchecked emissions are expected to rise as passenger and flight numbers increase.
Shares in easyJet (LON: EZJ) pick up as the firm eyes the package holiday market, but I think there's a need for caution.
EasyJet has said it is going to become the first airline in the world to operate net-zero carbon flights through offsetting emissions made by its planes by, among other things, planting trees. The budget airline said it would invest around £25m over the next financial year in activities including "forestry, renewable and community based projects". EasyJet promised to support the development of hybrid and electric planes and help "reinvent and de-carbonise aviation over the long-term".