Easyjet shares 40% lower than last year around this time
Easyjet wants to inject some jet fuel into its stock – flying 40% lower last year than this time
Easyjet wants to inject some jet fuel into its shares on Tuesday, which fly 40 percent lower last year than around this time.
The low-cost airline struck again last week as its latest Covid variant fueled fears of another lockdown.
Countries around the world quickly re-imposed travel restrictions to stop the spread of the mutant first identified in Botswana.
Easyjet shares collapsed yesterday as the market opened to the news, but made up for some of their losses to close 11.5 percent or 64.6 pence at 499.8 pence.
It had sparked optimism last month about an industry-wide recovery when it said it would fly at 70 percent of pre-Covid capacity through the end of the year.
But it warned this month of a potential tariff cut to boost demand. It expects to report losses of between £1.135 billion and £1.175 billion in the 12 months to the end of September when it reports Tuesday, the second year in a row when losses will exceed £1 billion.
Shares have more than halved from a high in 2021 and are hovering near their lows in the fall of 2020, when the lockdowns came into effect.
The pandemic is a key factor and lockdowns in Austria and the Netherlands, stricter measures in Belgium and rumors of lockdowns in Germany are hitting stocks in travel agencies, AJ Bell analysts say.
The timing of a Covid wave on the continent and the emergence of the new variant means Easyjet is taking a hit, just as bookings increased thanks to vaccination programs and relaxed restrictions.