Easyjet going the wrong way....
In January 2008 over at my other blog on the airline business I posted this.....
Would you believe it easyJet's share price is down. Just as we've been predicting for months here at Airline Confidential things are getting tricky. By the close their shares were trading at a shade over 450 pence, well down on the day; last spring they were up around 700 pence. It comes off the back of easyJet announcing their December results. Though passenger numbers increased by 9.9% on the back of new routes, there's been a sharp decline in their load factor (down over 2% points). Over extension some are saying and who are we to disagree. With consumer spending tightening things are only going to get worse. Four days ago easyjet announced their biggest ever sale. I would love to have been a fly on the wall in their forward planning meetings. There are likely to be some people in that company with a lot of egg on their face in nine months time.
Apparently stock market analysts remain cautiously optimistic for the prospects for budget carriers such as Ryanair and easyJet. Now if I was nursing a nett gain on my my Easyjet or Ryanair shares I think I'd take the money and run.
Well today easyJet shares are down to 246 pence a share....
4 comments:
So if you could invest in any of the airlines at the moment which would it/they be?
Ah ha! making money on airline shares has always been a matter of luck and timing. Get in at the bottom and take your profit at the top. I'd hang on until we see a few go to the wall. Not that too many can collapse due to the fact that banks own most of their aircraft and it will have an unsettling, not to say catastrophic affect on their businesses. A couple of rules. Never invest in single idea carriers - the one class transatlantic carriers or all cargo airlines. By and large go with carriers who do first, business, economy and cargo....there's lots of strings to their bow.
I was very impressed by Swiss National Airlines. Great service. Head and shoulders above United, which I took going to Europe.
I do hope Easyjet survive at least until 16th July when I fly home with them!
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