What can drive the stock down
EasyJet also revealed that it expects to report a pre-tax loss between £360m and £380m for the first half of its financial year. The airline will incur significant fuel costs because it has already bought jet fuel for its planes, with no certainty of when they will fly again.
EasyJet grounded its planes a week after Prime Minister Boris Johnson announced the UK Covid-19 lockdown on 23 March.
The company had a full roster of pilots and staff during that period when many flights were being cancelled, leading to a rise in costs.
It also only started furloughing staff after the end of March.
It said it had a cash balance of around £3.3bn and based on a number of scenarios, it would have enough reserves to "remain liquid", should its jets stay grounded for nine months.
The airline said: "At this stage, given the level of continued uncertainty, it is not possible to provide financial guidance for the remainder of the financial year.
This comes after Thomas cook Collapse.
Passenger numbers grew by 2.8% year on year, despite widespread disruption from strikes in France during which 871 flights were cancelled between October and December.
The airline said that robust demand and slow capacity growth, with only 1% more seats flown, contributed to an increase in revenue per seat of almost 8.8%. It ascribed about one-fifth of that growth to the collapse of rival Thomas Cook last September.
While it traditionally struggles to make money through the winter months, easyJet said it was on target for losses “better than 2019” in the first half of the financial year, despite an increased fuel bill.
What could drive the stock up!
EasyJet can survive a nine-month shutdown thanks to its measures to contend with the coronavirus crisis and is planning for a slow recovery, the British airline said on Thursday.
Big players in easyjet could move the price as high as it wants knowing that it will continue to grow after the covid-19
the old saying goes Buy low sell High!
Well the stock price for this was very low all time Low i beleive and did we miss a big oppitunity to BUY and Leave? Or was we right to keep waiting?