|Bid||513.20 x 0|
|Ask||515.20 x 0|
|Day's range||491.90 - 525.28|
|52-week range||410.00 - 1,570.00|
|Beta (5Y monthly)||1.18|
|PE ratio (TTM)||5.86|
|Earnings date||14 May 2020|
|Forward dividend & yield||0.44 (8.83%)|
|Ex-dividend date||27 Feb 2020|
|1y target est||1,479.74|
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.
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.
Britain will spend up to 75 million pounds ($93 million) to get stranded passengers home, foreign minister Dominic Raab said on Monday, adding that airlines like British Airways, easyJet and Virgin would help and planes would be chartered where necessary. Tens of thousands of British travellers stranded by the spread of coronavirus will be flown home under the new arrangement, which sees those airlines plus Jet2 and Titan offering alternative bookings where routes are cancelled. "Where commercial flights are no longer running, the government will provide the necessary financial support for special charter flights to bring UK nationals back home," Raab said at a news conference.
The UK government is even drafting in an airline associated with VIP and corporate travel — Titan Airways — to help charter flights.
EasyJet has grounded its entire fleet of aircraft due to the coronavirus pandemic. In a statement to the London Stock Exchange, the no-frills carrier said it completed its final rescue flight on Sunday and was now about to place its cabin crew on a two-month leave of absence.
(Bloomberg) -- The coronavirus threat has handed EasyJet Plc’s founder, top shareholder and biggest critic a new weapon in his longstanding campaign to put the brakes on growth at the discount airline.Stelios Haji-Ioannou, who quit the board in protest over its expansion in 2010, has renewed his demand the U.K. carrier cancel an order for more than 100 Airbus SE narrow-body aircraft, arguing that the 4.5 billion-pound ($5.6 billion) cost threatens to drag the company down as the coronavirus pandemic cripples industry growth.The entrepreneur, who controls 34% of the stock, threatened to call one shareholder meeting a week to remove directors if he doesn’t get his way.“Even with a resumption of air traffic, any income from passengers is likely to be too low to keep up with outgoings and would most likely render EasyJet insolvent if it continues to pay Airbus for more aircraft,” Haji-Ioannou said in a letter to the board dated March 29.The outburst by a longtime detractor gives EasyJet another headache as it tries to manage through a crisis that forced it to ground its fleet Monday and put staff on leave to conserve cash.The airline, based near London in Luton, said it’s “working with suppliers to defer and reduce payments where possible, including on aircraft expenditure.” The company said it has a strong balance sheet and no maturities until 2022, though it’s looking for ways to increase its access to cash to see it through the gap in business.“We are in ongoing discussions with liquidity providers who recognize our strength of balance sheet and business model,” EasyJet said.EasyJet shares fell as much as 10% and were down 7.7% as of 12:36 p.m. in London. Airbus sank 9.3% in Paris.Airlines across the globe have been shocked into survival mode by the coronavirus, which forced an abrupt halt in travel as countries cut off access to fight the disease. The International Air Transport Association last week warned of a liquidity crunch and said carriers could lose $252 billion in revenue this year.Governments have started to pitch in. While the U.K. has ruled out a broad bailout for aviation, it has created a 330 billion-pound program for state-guaranteed loans that’s open to companies with investment-grade credit ratings.EasyJet, whose debt is rated at BBB by S&P, has about 1.6 billion pounds of cash and $500 million of an undrawn and committed credit facility, which expires in 2021, S&P Global said in a report March 20. The carrier has annual lease commitments of about 250 million pounds to 300 million pounds, S&P said.EasyJet could raise cash through a sale-and-leaseback transaction of its fleet of Airbus SE A320-family jets, a person familiar with the matter said, who declined to be identified because the plans were confidential. S&P estimates the fleet is worth more than 4 billion pounds. A spokesperson for Easyjet declined to comment on specific fund raising plans. Founder’s LetterIn his letter, Haji-Ioannou said he opposed any government aid, preferring new equity through a rights issue to existing shareholders. In a separate statement, he called for the company to raise 600 million pounds by issuing 25% more shares. He said he would consider participating in an equity infusion, provided the carrier canceled its Airbus order. He also reiterated that the airline’s board should conduct an investigation into how Airbus won orders from EasyJet.The 53-year-old entrepreneur said he would challenge a board member each week with a proxy campaign calling for their removal, unless the company gives notice of cancellation to Toulouse, France-based Airbus.“We’re in close contact with all of our customers and are reaching out to understand their situation,” Airbus said through a spokesman. “EasyJet is an appreciated customer and we’re working with them to find a practical solution which honors our commitments.”EasyJet is contractually obligated to accept the 114 planes it has on order, notwithstanding the coronavirus crisis, according to people familiar with the matter. It’s in discussions with Airbus to defer part of the order and change some delivery slots, said the people, who asked not to be identified because the talks are confidential. Aircraft orders are usually agreed years in advance and cancellations carry stiff penalties.Analysts said EasyJet is one of the carriers best-positioned for the downturn because it has financial resources many of its competitors don’t, and can gain market share as the crisis forces some capacity reductions in Europe.“Whilst he can agitate on the sidelines, it’s unlikely he’ll get his way,” said Mark Simpson, an analyst at Goodbody. “We believe that EasyJet has a strong balance sheet, and along with IAG, is best positioned to backfill capacity that is lost as other carriers struggle, and so they need the order for the new aircraft.”EasyJet, which had been operating a handful of repatriation flights, said Monday it had parked all of its planes. Cabin crew will get 80% of their pay under a government program. Irish rival Ryanair Holdings Plc said last week it planned to ground over 90% of its fleet in coming weeks.The restart of scheduled flights will depend on government restrictions as well as demand, EasyJet said in a statement.(Updates with potential for sale-and-lease back option in 12th paragraph, additional founder comment in 14th.)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.