|Bid||551.60 x 0|
|Ask||552.00 x 0|
|Day's range||491.90 - 553.40|
|52-week range||410.00 - 1,570.00|
|Beta (5Y monthly)||1.61|
|PE ratio (TTM)||6.29|
|Earnings date||14 May 2020|
|Forward dividend & yield||0.44 (9.24%)|
|Ex-dividend date||27 Feb 2020|
|1y target est||1,479.74|
(Bloomberg) -- EasyJet Plc borrowed 1.1 billion pounds ($1.35 billion) to shore up its finances during the coronavirus pandemic, tapping into a U.K. guarantee program in defiance of founder Stelios Haji-Ioannou’s escalating activist campaign.The U.K. discount carrier accessed 600 million pounds in Bank of England-backed commercial paper and requested to draw down 500 million pounds from an existing facility that’s secured against aircraft, it said in a statement Monday. The move comes a day after Haji-Ioannou said he’s try to oust Chief Financial Officer Andrew Findlay as part of a pressure campaign aimed at canceling 4.5 billion pounds of aircraft orders with Airbus SE.The new loan came through the U.K.’s Covid Corporate Financing Facility open to investment grade companies. With the money, EasyJet said it will have about 2.3 billion pounds to see it through a crisis that’s forced it to ground its fleet and idle staff.The carrier also said it had reached deals with its pilot and cabin-crew unions on furlough plans, and that it’ll consider further liquidity options “given the possibility of a prolonged grounding.”EasyJet has also been defending itself against Haji-Ioannou, the carrier’s largest shareholder with a 34% stake. After the company rejected his request for a shareholder meeting to remove one board member, he pressed his case by saying he’ll try to remove Findlay.Ousting the CFO “is the best way to stop him writing billion-pound cheques plus to Airbus every year,” Haji-Ioannou said in a statement posted on the website of his holding company EasyGroup. He opposes more loans, adding that ending the Airbus contract for more than 100 A320-series jets and holding off from buying more aircraft is the only way to “preserve the value for all shareholders.”EasyJet extended gains, rising 16% in London on Monday. Stocks rose broadly on optimism the global fight against the virus was making progress.With travel curtailed by the coronavirus, the discount airline has grounded its fleet to preserve cash. Fundraising scenarios it’s exploring include a delay in plane orders to conserve cash if needed for a longer-term downturn, people familiar with the matter said last week. It’s also open to issuing more stock, as Haji-Ioannou has suggested it do through a rights offering, though that’s considered a less favorable option, the people said.“We have a longstanding contract with Airbus which allows a great deal of flexibility and are in discussion with them on how we can best use that flexibility in the current climate,” EasyJet said in an emailed response to questions. “This could include order deferrals and option cancellations where appropriate.”EasyJet will release a trading update in the second half of April, and results for the fiscal first half through March will be announced on June 30, it said in the filing.Haji-Ioannou stepped down from the board in 2010 to protest EasyJet’s expansion plans, and has long sought to slow growth in favor of profit and dividends. He’s seized on the coronavirus crisis to press his campaign, as airlines with little revenue have no immediate need for planes.Last week, EasyJet rejected his proposal for a general meeting to remove directer Andreas Bierwirth, citing a technicality. The airline has said that doing so would be a distraction. With the latest move, the 53-year-old entrepreneur said he’d try to rally other shareholders and bondholders to his side.Daniel Roeska, an analyst at Bernstein, said the commercial-paper loan probably comes without restictions, though EasyJet will probably need to refinance it within a year. The new funding should be “enough, in our view, to last the company until the end of the calendar year.”(Updates with comment from EasyJet in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stelios Haji-Ioannou, easyJet's founder and biggest shareholder, on Monday intensified his battle with the airline's management over a huge aircraft order with Airbus which he says it should cancel. Haji-Ioannou said in a statement that he had told the airline he would not provide it with any new equity until it terminates a 4.5 billion pound deal with Airbus. Stelios, as he is better known, says that the 107 planes on order are "useless", after the coronavirus pandemic brought air travel to an almost standstill.
Stelios Haji-Ioannou, the founder of easyJet Plc, has warned that he will not inject any fresh equity into the airline until it terminates a contract with Airbus SE for 4.5 billion pounds ($5.50 billion), according to a letter https://easy.com/wp/wp-content/uploads/2020-04-05-stelios-media-statement-on-easyjet-and-airbus-for-release-6april20-final.pdf posted on EasyGroup's website. In his letter, Haji-Ioannou has also called for removal of easyJet's Chief Finaicial Officer Andrew Findlay, after earlier calling for a board meeting on a vote to remove Andreas Bierwirth as a director, which was rejected by easyJet. "If this 4.5 billion pound liability to Airbus is preserved – and not cancelled - by the easyJet board then, I regret to report, easyJet will run out of money around August 2020, perhaps even earlier," the founder said in his letter.
(Bloomberg) -- EasyJet Plc’s founder escalated his feud with the board, calling for the ouster of a director in a bid to pressure the discount airline into canceling a 4.5 billion-pound ($5.6 billion) aircraft order.Stelios Haji-Ioannou, EasyJet’s biggest owner with a 34% stake, proposed a general meeting to remove director Andreas Bierwirth, according to a letter sent late Wednesday to the airline’s chairman, John Barton. He threatened to challenge one non-executive director every seven weeks, tying up the board with a series of cumbersome and divisive general meetings until it succumbs.Haji-Ioannou, who has long opposed buying new aircraft, this week turned up the heat on a low-simmering campaign to halt the purchase of more than 100 Airbus SE narrow-body jets. The 53-year-old entrepreneur, emboldened by the coronavirus crisis that’s suddenly turned large spending commitments into a millstone, on Sunday demanded the deal for A320-family planes be terminated.“The board is focused on managing the unprecedented challenges facing the airline and the aviation sector as a whole,” EasyJet said in response to Haji-Ioannou’s letter. “We believe that holding a general meeting would be an unhelpful distraction from tackling the many immediate issues our business faces.”EasyJet shares fell 5.4% in London. The stock has declined 65% this year. The airline said Thursday in a stock exchange filing that the board was considering the contents of Haji-Ioannou’s letter and “further announcements will be made as appropriate.”Bloomberg News reported on Wednesday that EasyJet is considering options including raising new debt and equity to provide a buffer against the downturn, which has forced the U.K. airline to ground its fleet.The U.K. carrier is exploring various fundraising scenarios, including commercial and government sources, as well as a delay in plane orders to conserve cash if needed for a longer-term downturn, people familiar with the matter said, asking not to be named because the discussions are confidential. The airline would prefer loans to selling new shares, one of the people said.EasyJet, which is seen as one of the European airlines better-equipped because of its existing cash and credit lines, is discussing the best options to navigate the pandemic-related slowdown and traditionally slower winter season, the people said.The carrier said it had received confirmation Thursday that it is eligible for loans under the Bank of England’s Covid Corporate Financing Facility.Adding liquidity would fortify EasyJet as it digs in for an undetermined period with little revenue. The International Air Transport Association this week warned that airlines will burn through as much as $61 billion worldwide in the second quarter as travel hits bottom.Haji-Ioannou has also called on the company to raise 600 million pounds in equity through a rights issue to existing shareholders. He quit the board in 2010 in a dispute over growth, and has consistently objected to the airline’s growth plans.“There is no doubt in our mind that all airlines have to attempt to delay all capex in the immediate future,” Bernstein analyst Daniel Roeska wrote in a reasearch note. He said he’s uncertain how practical it would be to cancel the order outright, given the potential penalties. “From a strategic point of view, we would see the new aircraft strengthening EasyJet’s long term position.”(Updates with EasyJet statement about access to loan in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stelios Haji-Ioannou, the founder of easyJet , has called for a board meeting to remove independent non-executive director Andreas Bierwirth. The British budget airline said it had received the request and was considering its response. EasyJet has been under pressure from its founder who asked in a letter on Sunday for it to cancel or renegotiate a 4.5 billion pound ($5.6 billion) order for 107 Airbus planes because the extra aircraft would destroy shareholder value.
With the news about easyJet grounding flights, its share price has fallen. Is now the right time to buy?The post Is now the right time to buy easyJet shares? appeared first on The Motley Fool UK.
Shares in airline operators have plummeted in the stock market crash. But does that mean now is a good time to invest?The post EasyJet grounds entire fleet. Should you invest in airline stocks in this market crash? appeared first on The Motley Fool UK.
The easyJet share price is suffering severe turbulence. Could there yet be clear skies over the horizon for investors?The post What next for the easyJet share price as Sir Stelios opens fire appeared first on The Motley Fool UK.
(Bloomberg) -- Over the course of more than three decades, Dubai has morphed from distant desert outpost into business metropolis, relying on state-owned airline Emirates to funnel many millions of travelers through the bustling hub each year. Now that the coronavirus has forced the carrier to suspend operations, the government is quickly swooping in to protect its most important growth engine.Dubai’s deputy ruler, Sheikh Hamdan bin Rashid Al Maktoum, said on Tuesday that the state will grant unspecified financial aid to Emirates, and that the government is committed to providing the full support by injecting fresh capital. It’s among the first state-sponsored bailouts of a carrier due to the coronavirus, which has upended the industry on an unprecedented scale.Emirates is the most visible emblem of Dubai’s transformation over the years, starting out with a pair of used aircraft in the mid-1980s to become an aviation force unmatched in global reach and boasting the biggest fleet of wide-body aircraft by far. Emirates has more than 100 Airbus SE A380s in operation alone, which rain down around the clock on Dubai International, the busiest airport by international traffic and a key transfer hub for global travel.Now Emirates, like most other airlines around the world, has been forced to ground virtually its entire passenger fleet after countries sealed off access to fight the virus. That has dramatically suffocated demand, which was already in decline as a depressed oil price weighed on corporate travel. Tourism from China also took a hit after the virus first erupted there late last year.“We don’t know how much demand is going to come back and when,” said John Strickland, an independent aviation consultant at JLS Consulting in London. “Emirates and other airlines will be carrying overcapacity for quite some time.”Airlines have been particularly hard hit by the abrupt collapse in air travel as countries lock down to slow the spread of the virus. The International Air Transport Association, which represents 290 airlines around the world, estimates the industry may suffer more than $250 billion in lost revenue this year. Carriers like Deutsche Lufthansa AG and EasyJet Plc have grounded their fleets, and many carriers have called on government aid to help them weather the crisis.Emirates is the largest of the major Middle East carriers, which also include Qatar Airways QCSC and Etihad Airways PJSC. Qatar said last week that it has maintained about a third of its operating schedule, in part because the country’s flag carrier has a more diverse fleet that also includes narrow-body airliners. Emirates, by contrast, only flies the biggest category of jets, including 115 A380s, which most carriers have mothballed for the time being.The three Middle East airlines are all state owned, giving them a potential advantage in swiftly securing bailout packages. In Europe, carriers from Air France-KLM Group to Lufthansa have asked for aid, while the massive U.S. stimulus package also includes support for the ailing industry. Airbus has said that while it doesn’t require state aid for now, it supports airlines’ efforts to secure government lifelines.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Air France-KLM said on March 16 it would park its biggest airliners and slash services by up to 90%. Air New Zealand said on March 16 it would cut long-haul capacity by 85% in the coming months and the domestic network by 30% in April and May. The airline has withdrawn its full-year outlook, frozen hiring and offered unpaid leave to staff.
British Airways said it is temporarily suspending flights from Gatwick Airport in southern England, Britain's second busiest airport, due to the coronavirus. BA's boss warned earlier in March that the airline was in a battle for survival and would have to cut jobs and park planes. "Due to the considerable restrictions and challenging market environment, like many other airlines, we will temporarily suspend our flying schedule at Gatwick," a BA spokesman said.