17th Nov 2020. 1.43pm
EasyJet (EZJ) – Market Alert
EasyJet post first loss in 25 years
EasyJet’s Final Results, released this morning, saw the budget airline slump to a £1.3bn annual loss, the first in its 25-year history.
Passenger numbers halved to 48.1m in the year to September and revenue fell 52 per cent to just over £3bn.
With only a fifth of its fleet in the air for the remainder of the year, CEO Johan Lundgren agreed an extension to the repayment of a £600m UK government rescue loan to help it manage its finances through the winter season.
Prior to the pandemic EasyJet had a strong reputation for delivering year-on-year revenue growth.
Its once solid fundamentals have taken a sharp decline this year with the balance sheet moving from a net cash position in 2018 to a projected net debt of £467m.
Whilst the group have access to over £3bn in liquidity, much will ride on the effective global rollout of the vaccines and the ability for travel restrictions to lift in 2021.
After collapsing more than 70% from their January highs, EasyJet’s share price appears to have hammered out a bottom…
The shares have bounced seven times from the 480p-350p support zone and the most recent rally has significant momentum.
A retest of the June spike highs at 955p looks the most logical technical scenario.
This research is prepared for general information only and should not be construed as any form of investment advice.