Latest news with #easyJetHolidays
Forbes
01-08-2025
- Business
- Forbes
easyJet Share Price: Long-Term Value Amid Short-Term Turbulence
The easyJet share price (LON:EZJ) has faced further turbulence after a solid Q3 update was overshadowed by a drop in the airline's near-term outlook. Consequently, the stock has dipped back below 500p – but there's reason to believe the shares can fly again. Flying Quarter Had management reiterated its FY25 guidance – which was absent – I would have no qualms about the easyJet share price flying close to its YTD high by now. This is because the budget operator had quite a stellar quarter. Passenger revenue was up 9.7% to £1.76 billion, while ancillary revenue increased 5.6% to £732 million, and Holidays revenue r0se 27.4% to £428 million. As such, group revenue grew 10.9% to £2.92 billion. Nonetheless, the timing of Easter in Q3 this year saw ticket yields (passenger RASK) tick up 1.8% to 4.64p. Otherwise, yields would've come in slightly down, as has been the case for H1. But it was ultimately the fall in fuel prices that boosted easyJet's headline EBIT margin by 115bps to 10.04%. The 7.3% decline in fuel unit cost (fuel CASK) to 1.65p was precisely what I forecasted. This resulted in a mere 0.3% increase in fuel costs to £627 million. Higher costs was still inevitable, however, as bigger capacity, heavier load factors, and more passengers came into play. Not to mention, unit costs excluding fuel (CASK ex. fuel) ended up rising 2.3% to 4.39p from higher navigation fees, wages, and airport costs, offsetting some of the lower fuel cost benefits. Be that as it may, headline pre-tax profit (PBT) realised a healthy uptick of 21.1% to £286 million – in line with what I had predicted, too. No Reason To Panic Having said that, investors alike have panicked at the sight of a few clouds, as the somewhat ambiguous guidance let the easyJet share price down. While the company didn't concretely downgrade its full-year guidance, the highlighting of ATC staff strikes (£15 million impact) and slightly higher fuel costs (£10 million impact) was enough to have analysts pull their PBT estimates back to around £656 million from a previous £697 million. The language surrounding the other parts of the firm's guidance wasn't especially encouraging, either. The board cited some short-term impacts on a few of its longer routes to the Middle East due to the ongoing conflict in the region. But most prominently, they also stated seeing a trend of later bookings in the summer – just as Jet2 did last month – which didn't do much to shore up investor confidence. Despite that, I remain confident, and think that the market is pricing in too much gloom. The fact that Q4 forward bookings remain 1.0% higher than last year, an upward adjustment to ASK growth for the year (9.0% from 8.0%), and most promisingly, an imminent upgrade to the group's Holidays medium-term profit guidance, are all encouraging signals. Temporary Descent That said, I have downgraded my PBT estimate for FY25 to £674 million from a previous £701 million to account for the higher fuel and ATC-related costs. But in spite of that, my medium-term estimates have remained unchanged, as I don't anticipate travel demand to cool for the foreseeable future. In fact, the FTSE 100 constituent mentioned that Q1'26 forward sales are up 1.0% to 19.0%, with Holidays sales already half booked for the quarter as well. easyJet still has very ambitious goals to achieve. These include hitting a PBT of over £1.00 billion over the medium term, along with a 60.0% uplift to its net book value. Combined with the progress I've seen from the budget airline in reducing its winter losses, spearheading ancillary opportunities, and growing its packaged holidays business, I have a high level of conviction that easyJet will reiterate, or even upgrade its outlook in November. The easyJet share price has gone no where since the start of 2023. Hence, the stock currently has an EV/EBITDA ratio of 2.4, which pales in comparison to its sector (8.4) and adjusted 5-year (4.5) averages. And with earnings projected to grow at a CAGR of 11.9% through to FY27, a PEG of 0.7 against the sector average of 2.3 shows an undervalued proposition waiting to ascend once it gets past the current turbulence. Thus, I reiterate my price target of 730p.
Daily Mirror
30-07-2025
- Daily Mirror
Disabled woman's warning after easyJet 'destroys' rare family holiday
Donna Lalek, a bank worker from North Wales, said her holiday to Murcia, Spain was 'destroyed' by easyJet. After getting in touch with the Mirror, the budget airline agreed to pay the family compensation A family's getaway was ruined by a last-minute easyJet Holidays cancellation. Donna Lalek, her parents and brother had been looking forward to a trip to Murcia, Spain, and turned up to the airport ahead of their 6.05am flight on July 27. As they walked through the entrance doors, they received an email that'd make any happy holidaymaker's heart sink. "We received an email saying that there was a technical issue with our plane and the flight was cancelled, but they were working on how to help us," Donna, who works in a bank, explained. "We spoke to staff at the airport who advised they are not able to assist the package holiday customers. They just gave us a leaflet with a number to call. I made the call." The family's flight rebuff comes as a major European airline announces the cancellation of one of its key UK routes. Donna was told that no flight would leave within the next two days, meaning the holiday would be cancelled. The Laleks, from North Wales, suddenly went from looking forward to a sunny week away to sloping back home with a large financial hole in their pockets. "When I asked about the great expense of incidentals for the holiday, such as clothes, airport parking, fuel cost, travel insurance and transfers - not to mention the lost and wasted week off work for me and my brother - I was told it was not easyJet's responsibility to pay for these things," Donna explained. "They would not look at offering alternative holidays, so we had no choice but to return home. The flight was very early in the morning so we all lost a night's sleep unnecessarily and the petrol alone for a pointless return trip to the airport is not insignificant." The cancellation was particularly galling for Donna, who is disabled and can only travel with her family by her side. She said easyJet had 'destroyed' their holiday. "My family wanted to take me away so I could go on holiday again. but thanks to easyJet that won't be happening," she said. "Most of us work very hard and look forward to our summer holiday, so before booking, people should be made aware that easyJet may cancel your holiday, even if you have already arrived at the airport." Once all of the airport transfers, insurance, and travel to the airport are taken into account, Donna claims the family is £335 out of pocket. That doesn't include the time they booked off work. A spokesperson for easyJet said that a technical issue with the aircraft led to the cancellation. "Engineers attended the aircraft but unfortunately were unable to resolve the problem. As there were no other suitable flight alternatives to Murcia within two days of travel, the holiday therefore had to be cancelled," they explained. After the Mirror contacted the budget airline's press office, EasyJet agreed to process a full refund for the holiday and give the family £200 for the inconvenience. "In line with airline regulation, the customer will also be entitled to additional compensation due to the flight cancellation," the spokesperson added. "Whilst we do everything we can to get our customers away on their holidays, due to there being no alternative flight options on this occasion, we unfortunately had to cancel Ms Lalek's trip. We are in touch to process a full refund of her holiday as well as a gesture of goodwill to apologise for the disappointment caused."
Yahoo
20-07-2025
- Yahoo
Most popular destinations for UK holidaymakers named
Resorts in Spain and Portugal are the most popular destinations for UK holidaymakers this summer, according to a new report. Malaga and Palma de Mallorca in Spain top the list, followed by Faro in Portugal, research by easyJet Holidays found. Other popular destinations included Rhodes, Tenerife and Dalaman. Edinburgh and Belfast were said to be the most popular domestic destinations for people holidaying closer to home or visiting relatives. The busiest day of the summer for travel will be July 30, easyJet predicted.
Yahoo
06-07-2025
- Business
- Yahoo
Check out the latest easyJet share price and dividend forecasts. Time to consider buying?
The easyJet (LSE: EZJ) share price has bounced around over last five years or so and there's little sign of that changing. It's just hit another patch of turbulence, dropping 8.5% in a month. The shares are still up 15% over 12 months, but down around 10% over five years. This now looks like a FTSE 100 bargain, trading on a trailing price-to-earnings ratio of just 8.7. That's undeniably cheap. But then, it's looked cheap for some time. There's plenty going in its favour right now, including a low oil price and the growing success of the easyJet Holidays business. I've been baffled by its underperformance for months. So what's holding easyJet back? First-half results, published on 22 May, offered a few clues. The airline posted a pre-tax loss of £394m for the six months to 31 March. That was in line with expectations, and slightly better than last year if the timing of Easter's stripped out. Third-quarter bookings were 80% sold, with the fourth quarter already 42% full. easyJet Holidays is expecting 25% customer growth this year. Costs are coming down though. Capacity rose 12%, and its holidays arm posted a £44m profit, up £13m. Fuel cost per seat fell 8% year-on-year. The oil price remains low today, despite Middle East tensions. That could change, of course. The foundations look solid. Yet the market remains cautious. I don't really think of easyJet as a dividend stock. The trailing yield's a modest 2.3%, but there's more income coming our way. After three blank years during the pandemic, it paid 4.5p per share in 2023. Last year, that jumped almost 170% to 12.1p. That kind of rebound won't be repeated, sadly. The dividend's forecast to climb to 14.14p in 2025, then 15.44p in 2026 and 17.3p in 2027. Based on today's 525p share price, that would deliver a yield of 3.3% in two years. That's not going to get income hunters excited, but it's heading in the right direction. Reinvested dividends could quietly build over time if the airline keeps growing. The airline industry will never be risk-free. If fuel prices spike, that could quickly eat into confidence isn't exactly soaring either, particularly in Europe. The summer heat's another unknown. Repeated heatwaves could dent demand for southern getaways. But the outlook's upbeat. Analysts expect easyJet to report a full-year profit of £703m in 2025. And the group says it's on track to deliver £1bn in pre-tax profits within a few years. Forecasts are encouraging. Eighteen analysts produce a median share price target of 700p in 12 months. Now that's a 33% gain from where we are today. Twelve out of 20 rate the stock a Strong Buy, with two more saying Buy. None say Sell. That's no guarantee of future returns, but the numbers suggest easyJet could reward patient investors in the long run. With costs falling, bookings strong and dividends recovering, I think this is one FTSE 250 stock investors might consider buying. But they must be ready for more bumps along the way. The post Check out the latest easyJet share price and dividend forecasts. Time to consider buying? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Scotsman
01-07-2025
- Lifestyle
- Scotsman
Britain is facing a swimming crisis with 9 million British adults admitting they don't know how to swim
New research has uncovered that half (50%) of those who didn't learn as a child wanted to, while 42% admit to only staying in the shallow end and 33% now don't feel confident in the water at all. Free weekly newsletter Join our weekly YourWorld newsletter for updates, behind-the-scenes insights from our editors and your chance to shape what's next. Free weekly newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... While swimming and water safety are now a mandatory part of the national curriculum, one in five Brits were not offered swimming lessons in school and 17% didn't have a pool in their local area growing up. Data commissioned by easyJet Holidays also shows over 100 publicly accessible pools have closed across the nation over the last 20 years, with the average pool 4.3 miles from Brits' homes. Some (5%) say their local pool is now more than 10 miles away. Advertisement Hide Ad Advertisement Hide Ad Despite this, 35% of non-swimmers would take up the opportunity to learn as an adult, with many reporting feelings of vulnerability (23%), embarrassment (22%) and self-consciousness (19%) about their inability to swim. Olympic swimmer Tom Dean partners with easyJet Holidays to launch a 'Swim School' programme, offering free swimming lessons to 1,000 British adults ahead of the summer holidays, London. To help encourage adults across the country gain this vital skill, easyJet Holidays has partnered with Olympic swimmer Tom Dean to launch a Swim School and offer free swimming lessons to 1,000 British adults ahead of the summer holidays alongside national swim provider Better and the Royal Life Saving Society UK (RLSS UK). Tom Dean, a prominent water safety advocate who has addressed Parliament on the matter, and the RLSS UK share essential water safety tips for those learning to swim. These include pausing before taking the plunge, swimming with a buddy who can assist if needed, staying where your feet can touch the bottom of the pool and if in doubt, float it out. Top 10 barriers to learning how to swim as children: It wasn't seen as important (27%) The school didn't offer a learn to swim programme (24%) Parents couldn't swim, so they didn't teach me (24%) Parents didn't have time to take me to lessons (22%) Bad experience at an early age (21%) No pool nearby (17%) It was viewed as too dangerous (12%) Didn't have time during school (11%) Learning to swim isn't part of my culture or religion (7%) It was too expensive (7%) Olympic swimmer Tom Dean partners with easyJet Holidays to launch a 'Swim School' programme, offering free swimming lessons to 1,000 British adults ahead of the summer holidays, London Almost a third (31%) of parents worry about their children swimming on holiday because they don't know how to swim themselves, and 32% say they fear they won't be able to help if something happens to their child in the pool. Advertisement Hide Ad Advertisement Hide Ad The research also uncovered that 17% of Brits are scared to get in the pool while on holiday – with over one in 10 (11%) avoiding a beach holiday completely because they don't know how to swim. Additionally, 25% with a lack of swimming ability report it affecting the enjoyment of their holiday, with 18% wishing they could join their children or grandchildren in the pool. The skills gap could widen in the future as 14% of parents admitting they haven't enrolled their children in swimming lessons or aren't planning to teach them themselves, with 20% saying they don't have the time, 15% citing high costs and 13% believing it is too risky or dangerous. Tom Dean, Olympic swimmer, says: 'As an Olympic swimmer, I know the importance of learning water safety skills and am passionate about ensuring everyone across Britain has access to learn swimming competencies. Advertisement Hide Ad Advertisement Hide Ad 'Whether it's staying with a buddy, or knowing your limits and sticking to areas where you can stand, it's never too late to learn how to swim – and thanks to easyJet Holidays Swim School, more people will have access.' Matt Callaghan, Chief Operating Officer at easyJet Holidays said: 'We know how much Brits love their summer beach holidays to Europe's favourite destinations. That's why it's so important to us to highlight the surprisingly high number of adults who can't swim – something we're determined to help change. By improving safety and helping more people fully enjoy the water, we're also offering a life skill that lasts far beyond the holiday itself. 'We're thrilled to partner with Olympic athlete Tom Dean and the Royal Life Saving Society UK to offer 1,000 British adults the opportunity to learn to swim. Together, we're taking a meaningful step towards closing the gap and giving more people the confidence and freedom to enjoy the water – on holiday and at home.' The new 'Swim School' offer is now available via the easyJet Holidays website, offering six free lessons to 1,000 British adults, available to redeem via your nearest Better Leisure Centre – with 250 spots being released each week for four weeks, from Monday 30 June. Advertisement Hide Ad Advertisement Hide Ad For more information on Swim School and how to book, please visit Visit to book your 2025/2026 package holiday at the best value.
