Specialist
Former divisional leader at EasyJet plc
Agenda
- Competitive environment for low-cost carriers, including EasyJet (LON: EZJ), Wizz Air (LON: WIZZ), Ryanair (LON: RYA) and Norwegian Air Shuttle (OSL: NAS)
- Remaining travel restrictions and recovery timing
- EasyJet's aircraft delivery schedule and key travel markets
- Post-pandemic financial strategy
Questions
1.
Could you give an overview of the European travel industry amid recent recovery signs, focusing on remaining restrictions and the vaccine roll-out so far?
2.
How would you assess EasyJet’s positioning? How has the company fared throughout the pandemic vs peers? How has it been impacted by UK vs EU restrictions, given you noted the UK’s slightly different position?
3.
What seasonal impact do you expect as we head into September and autumn? Could it be counteracted by pent-up demand and the vaccine roll-out?
4.
Could you break down EasyJet’s exposure to visiting friends and relatives vs leisure vs business? The company indicated an interest in increasing business travellers in its customer mix.
5.
Would you say EasyJet’s recently introduced Standard Plus fare offering is an effort to capture more business travel? How effectively do you think the company could win business travel market share when it returns?
6.
Some low-cost carriers have increased their presences at primary vs secondary airports over the pandemic. Could you discuss the breakdown in EasyJet’s network between primary and secondary airports? How does the company manage its network?
7.
How do you assess British Airways’ recent interest in having a low-cost subsidiary to operate short-haul flights out of Gatwick Airport, which has been an important base for EasyJet? How might EasyJet react with competition for slots?
8.
You mentioned that EasyJet might not be interested in competing directly vs some low-cost carriers. How would you assess Ryanair and Wizz Air’s strategies and ramp-up throughout the pandemic vs EasyJet’s?
9.
You alluded to low-cost carriers increasing capacity in the market. How would you assess overall market capacity in Europe? Some legacy or prime carriers have permanently or temporarily removed capacity. What opportunity does that present to low-cost carriers who might fill those spaces?
10.
There’s been increased focus on leisure markets such as Portugal and Italy, both of which have weakened flag carriers from the pandemic. How would you say EasyJet is positioned to win slots and market share in those markets, given that’s also important in Ryanair and Wizz Air’s strategies?
11.
How would you assess EasyJet’s ability to quickly flex capacity to meet demand by adding seats to routes that are on the green list or more in demand? How quickly can the company react and manage its fleet and schedule accordingly?
12.
What’s your pricing outlook for the next year? What factors do you expect to influence fare per passenger and a return to pre-pandemic pricing?
13.
Could you break down EasyJet’s typical costs with airports and handling fees? The company claims to have an advantage over competitors on costs at primary airports. Could you discuss some of those factors?
14.
The lease percentage of EasyJet’s fleet increased by around 20% from the end of 2020 to H1 2021. Could you outline how the company managed its fleet during the downturn, noting the implications of that shift for costs and ramp-up?
15.
EasyJet expects around 15 deliveries from Airbus over the next two years. Do you expect any potential delays or delivery problems?
16.
You mentioned Ryanair and Wizz’s ability to take a slightly more bullish approach. How might that play into their fleet strategies? Ryanair plans to take around 210 Boeing 737s over the next three years. How does this compare to the market? How might it impact EasyJet?
17.
Ryanair aims to recruit around 2,000 new pilots over the next three years and you mentioned that EasyJet is slightly more unionised than other low-cost carriers. What is your labour availability outlook? Could labour be a potential bottleneck for EasyJet’s ramp-up plans and positioning?
18.
EasyJet reduced its cash burn to around GBP 55m in Q3 2021. How would you say the company’s cash burn has evolved? What is your outlook following the cuts made to its cost base and for the sustainability of those costs as capacity increases?
19.
What 1-2 priorities should EasyJet focus on for the remainder of 2021 and in the near term?
