Budget airline easyJet says it’s “facing the summer of 2022 with optimism,” after narrowing losses due to strong bookings despite livelihoods.
Easyjet told its shareholders that bookings for the last 10 weeks have consistently been above the same period in 2019 due to demand after travel restrictions were lifted.
- · 76% of forward bookings were sold for the third quarter and 36% for the fourth quarter.
- Bookings increased by 6% in the last 10 weeks compared to the same period of 2019
- Easter holidays saw a load factor of 90%
The disruption caused by Omicron pushed easyJet to a pre-tax loss of £545m in the six months to the end of March, compared to a loss of £701m a year ago.
And despite the increase in bookings, easyJet said it still faces short-term uncertainty and therefore will not provide further financial guidance for fiscal 2022.
Customers are booking closer to departure and visibility is limited.
easyJet CEO Johan Lundgren said the airline was ‘transformed’ during the pandemic:
“easyJet has reduced its losses from year to year, at the better end of the guidance. Suppressed demand and the lifting of travel restrictions have resulted in a strong and sustained recovery in trade, which has been exacerbated as a result of our actions.
These include the radical reallocation of aircraft, which saw more than 1.5 million seats move to top-performing markets, and a step change in our revenue-boosting spin-offs – both contributing to a 9% year-over-year increase in our overall yield. Same period in FY19. All of this will offer more, not just now, but in the future as more passengers take to the skies.
Shares opened almost 1% higher.
Continuing to rise in US wheat prices today will increase inflationary pressures in the food sector.
The move comes after India unexpectedly banned wheat exports last week and the Russia-Ukraine war continued to bolster global grain markets and raised concerns over a global food crisis.
Reuters has the details:
The most active wheat contract on the Chicago Board of Trade (CBOT) was 12.41-3/4 bushels, up 0.89%.
CBOT wheat had climbed more than 8% in the past two days after reports showing India’s wheat ban and bad US winter crops.
CBOT soybeans rose 0.95% to 16.78-1/2 bushels, boosting its earnings, while corn was up 0.48% to $7.85-1/4 per bushel.
The United Nations has warned that the war in Ukraine is helping to fuel a global food crisis that could last for years if left unchecked, as it announced an additional $12 billion in funding to mitigate the “devastating effects” of the World Bank.
UN secretary-general António Guterres said the war-induced grain and fertilizer shortages, rising temperatures and supply problems from the pandemic threaten to “pull tens of millions of people into food insecurity” as financial markets see share prices fall heavily again. on inflation fears and a worldwide recession.
While speaking at a UN meeting on global food security in New York, he and others urged Russia to liberalize Ukrainian grain exports, saying that what would follow would be “malnutrition, mass starvation and famine in a crisis that could last for years.”
He said he was in “intense contact” with Russia and other countries to try to find solutions.
“The complex security, economic and financial implications require the goodwill of all parties to reach a package deal,” he said of his talks with Moscow, Ukraine, Turkey, the United States, the European Union and other countries.
“I won’t go into details because public disclosures can undermine the chances of success.”
Asia-Pacific markets fell after heavy losses on Wall Street last night.
of Hong Kong Exceed You g Afternoon trading with South Koria’s leads sales down 2.4% KOSPI Japan lost 1.5%. nikkei 1.9% off.
Technology stocks fell Tencent holdings It lost 6.6% after reporting the slowest revenue growth on record after China’s crackdown on tech companies.
Stephen innes related to SPI Presence To manage He says Target’s weak quarterly earnings add fuel to the recession risk narrative, in addition to fears about rising interest rates:
Stocks remain at the mercy of broader macro themes, and it remains problematic for risk as more hawkish comments from Fed Chairman Jay Powell have led to front-end rates rising even higher.
In the medium term, the Fed is likely to respond to any easing in financial conditions by increasing the hawkish voices and actually acting as a cover on the markets. And that should keep active money on the side.
The wild ride in US stocks continued on Wednesday as the Dow Jones Industrial Average fell more than 1100 points as investors fret about an impending recession.
All major US markets fell sharply, with the S&P closing 4%, the biggest drop since June 2020, and the tech-heavy Nasdaq losing 4.7%.
Markets rose on Tuesday after positive news about consumer spending and signs that China is easing its tight Covid-19 lockdowns. Just one day later, concerns about the economic slowdown triggered a sweeping sell-off.
The sale began after Target said supply chain costs and inflationary pressures were cutting its profits, and customers were buying fewer high-margin items like kitchen appliances, televisions and furniture. More here:
Good morning and welcome to our rolling coverage of business, the world economy and financial markets.
Fears of recession are returning to markets as rising inflation and battered supply chains hit economies, raising the cost of living and hitting some corporate profits.
U.S. stocks fell last night for the biggest daily drop in almost two years on concerns that economic growth will slow as central bankers try to raise interest rates to stem the rise in inflation.
Fed chairman Jerome Powell’s determination to continue raising borrowing costs until inflation drops significantly has rocked Wall Street and is likely to drag European markets down as well today.
The S&P500 is down more than 4% yesterday, the Nasdaq is down more than 5% and the Dow is down more than 3.5%.
silk Ozkardeskayasenior analyst at Swiss quote Bankexplains:
Powell said this week that the Federal Reserve will go beyond a neutral rate to rein in inflation.
But at this point no one knows where the neutral rate is, not even central bankers have a clue.
The main catalysts behind the move are always the same: fear of higher inflation, a tighter Fed to combat high inflation, and fear of a recession.
Technology stocks, which benefited from ultra-loose monetary policy in 2020 and 2021, took another hit, and the Nasdaq Composite has lost nearly 28% so far this year. Apple lost 5%, Amazon pour 7%.
Compare S&P 500 The stock index also saw its biggest loss since June 2020 as traders were startled by the retailer. Aim. The stock fell 27% after cutting its profit forecast and warning that costs were rising.
Walmart He issued a similar warning Tuesday as he grappled with rising inflation in food and fuel.
Data showing a decline in housing starts and building permits in the US raised concerns that the US economy might slow down.
Jim Reid related to German Bank explains:
There was no single catalyst behind the decline, but weak housing data from the US and Target’s move to lower its profit outlook helped feed investor concerns that the consumer may not be in as strong a position as previously thought.
And that sits alongside all the other recent concerns that the global economy is heading in a stagflationary direction amid various supply chain problems, along with the risks that tighter central bank policy will further slow growth and plunge various economies into recession.
That could include the UK, which looks vulnerable to a downturn after inflation hit a 40-year high of 9% yesterday.
- 9.30 BST: Latest UK economic and business activity report from ONS
- 11am BST: CBI industrial trends report
- 12.30pm BST: Accounts for ECB Monetary Policy Meeting
- 13:30 BST: US weekly jobless numbers
- 15.00 BST: US home sales