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%.
How much does it cost to buy UK shares with IG?
There are three ways to ‘buy’ UK shares with IG: spread betting, trading CFDs or buying physical shares. The cost will depend on which method you choose. The table below illustrates how the costs to get exposure to £10,000 of Lloyds stock, which is equivalent to 16,000 shares (quoted at 62.5p a share).
Remember, spread bets and CFDs are derivatives, which come with higher risk and reward than investing.
Cost to get exposure to Lloyds stock
|Spread betting||CFD trading||Share dealing|
|Action||Buy £160 per point||Buy 16,000 share CFDs||Buy 16,000 shares|
|Capital required to open||£2000||£2000||£10,000|
Note: Amounts do not include overnight funding charges and taxes. Spread bets are not subject to tax. CFDs are free from stamp duty, but subject to capital gains tax. Share dealing is subject to both stamp duty and capital gains tax.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.