easyJet

Flying blind: expecting further losses in H2 and FY2021

  • Sectors : Airlines
  • Companies : easyJet

Ratings and price correct at time of issue.

  • easyJet

    Closing Price: 573p

  • RATING 20/06/18

  • PREVIOUS RATING 12/12/17

    OUTPERFORM

DAVY VIEW

Although a shot in the dark, we intend to publish estimates for all the airlines as they post their calendar Q1 results. easyJet’s pre-close statement on April 16th now provides this opportunity; however, much uncertainty remains with the EGM called by its significant minority shareholder in mid/late May and H1 results deferred until June 30th. With operations likely to resume on a slow and gradual basis, we assume reported losses before tax of £1.11bn and £295m in FY2020 and FY2021 respectively before a modest profit in FY2022 (£235m). We retain our ‘Neutral’ rating with a price target of £6.

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Apr 27 2020, 06:30 IST/BST

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