Stock of the Week: easyJet

Budget airline has suffered along with others in the industry, but Morningstar analysts say easyJet could be one of the better placed companies to benefit from the recovery

James Gard 5 February, 2021 | 10:35AM
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Post-It Note

Our stock of the week has a travel theme and our Twitter followers have chosen easyJet (EZJ), Europe’s second largest airline behind Ryanair (RYA). For most airlines, 2020 was one of the toughest trading periods in their history: easyJet passenger numbers fell 87% to 2 million in the last three months of 2020 and passenger revenue dropped by 90% (to £118 million).

And in its annual results in November last year, the airline said its passenger numbers had halved in the year to the end of September, from just under 100 million in 2019 to 48 million in 2020. As a result, the airline made a £1.2 billion loss for the year, compared with a profit of £430 million in 2019. (For comparison, former stock of the week IAG lost over £5 billion during nine months in 2020).

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

James Gard  is content editor for Morningstar.co.uk

 

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