Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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.

easyJet and Ryanair plan to return to the skies in July, albeit with a significantly reduced flight schedule, with the news helping to stabilise the pairs share prices on Tuesday.

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
Total fees £20.88 £20.88 £16

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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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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