easyJet and Ryanair look to partially return to the skies in July
The two low-cost airlines plan to return to the skies in July, albeit with a significantly reduced schedule, with the news helping to stabilise the pairs share prices.
In anticipation of an easing of coronavirus-related lockdown measures, Ryanair plans to offer 40% of its flights from 1 July. easyJet has not yet finalised its plans, though the airline is expected to offer flights on most of its short-haul routes, but at reduced frequency.
Ryanair said that it will ask passengers to wear face masks and that buy-on-board purchases be made with contactless payment methods in an effort to limit the spread of Covid-19 on its flights.
Passengers on Ryanair flights will also be required to take temperature tests prior to boarding the aircraft and will not be allowed to queue for toilets, but instead ask permission from a member of the crew.
‘After four months, it is time to get Europe flying again,’ Ryanair CEO Eddie Wilson said. ‘Ryanair will work closely with public health authorities to ensure that these flights comply, where possible, with effective measures to limit the spread of Covid-19.’
easyJet closed 1.4% higher at 507p per share on Tuesday, while Ryanair ended the session at €9.08 per share, up 2.4%.
Analysts unclear on European airline industry
The economic fallout from the Covid-19 crisis is still difficult to quantify at this stage, with analysts struggling to accurately assess the impact the pandemic will have on members of the airline industry.
In fact, analysts from Liberum Capital are still reviewing their assessment of Ryanair, with the investment bank yet to update its March forecast for the stock.
Goldman Sachs was able to give its assessment of easyJet, however; with the US-based investment bank reiterating its ‘sell’ rating for the low-cost airline and lowering its target price for the stock to 545p per share in May.
Based on where easyJet closed on Tuesday, analysts from Goldman Sachs believe the stock has a potential upside of 7.5%.
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