EasyJet plc (LON: EZJ) share price fell 4.99% after reporting a full-year loss of £1.14 billion and reported a weekly cash burn rate of £36 million, which was better than expected.
The budget airline group told investors that the booking during October and the Christmas holidays was quite encouraging. Hence, it had added 25 aircraft to its fleet to meet the rising demand for its services.
The airline also warned investors that it could not predict the impact of the new Omicron variant of the coronavirus since it was too early. Still, the impact may not be as bad as initially expected.
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Easyjet is currently planning to hit 65%-70% of its 2019 passenger levels in the first few months of 2022, while it expects to be operating at 100% by the end of the year, all factors remaining stable.
However, just like the delta variant led to the postponement of some bookings as new lockdowns were announced in some European countries.
The airline reported a lower net loss during the second half of the year than the £701 million loss posted in the year’s first half.
While the airline travel industry still faces a significant challenge from the coronavirus pandemic, Easyjet is hopeful that international travel will be back to 2019 level by the end of 2022, which is excellent news for the entire industry.
Johan Lundgren, EasyJet’s CEO, said: “Having delivered FY’21 ahead of consensus, we have seen an encouraging start to this year with strong demand returning for peak winter holiday periods, coupled with increasing summer demand with Q422 capacity expected to be close to FY’19 levels.”
Adding:
“We are expanding our leadership positions at key bases such as Gatwick and Milan with additional slots and aircraft this year and have 118 aircraft on order with a further 59 purchase options and rights confirmed to further build on this in the years to come.”
Investors interested in EasyJet shares may find its current prices quite attractive since it is trading at 13 months lows. However, there are no guarantees that we will not see further losses.
*This is not investment advice. Always do your due diligence before making investment decisions.
Easyjet share price.
Easyjet share price fell 4.99% to trade at 483.4p, falling from Monday’s closing price of 508.8p.
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