MARKET REPORT: Airbus aircraft delay can’t bring Easyjet shares to the ground as new strain of Covid plunges global aviation industry deeper into crisis
Airline Easyjet pushed back more aircraft orders as the new Covid variety plunged the global aviation industry deeper into crisis.
According to a new flight schedule with the jet manufacturer Airbus, Easyjet will not receive any new aircraft in 2021.
And a total of 22 that should have shipped between 2021 and 2024 have now been rolled back to 2027 and 2028.
Grounded: According to a new schedule with jet maker Airbus, Easyjet will not receive any new aircraft in 2021
The deal will save money in the short term and raise serious questions about how much flight time any of its planes will have in the next year before a Covid vaccine is rolled out globally.
All hopes for a Christmas boost have been dashed by the discovery of the strain that has led dozens of countries to ban British travelers.
Easyjet has won a whopping £ 4.5 billion contract with Airbus to buy more than 100 aircraft at the center of a bitter dispute with Easyjet’s founder and largest shareholder, Sir Stelios Haji-Ioannou.
He wants the order canceled, and if the low-cost airline was hoping the deferrals would fix the relationship, it was a mistake.
Stock Watch – Bluerock Diamonds
Bluerock Diamonds’Plans to expand the Kareevlei mine in the Kimberley region of South Africa are in full swing.
A crushing circuit on the site will be completed within 14 days – and it will allow it to process 75 percent more stones when it is up and running next year.
More drilling has also indicated that the resource is 43 percent larger than previously thought.
The AIM-listed Bluerock, whose stake rose 4.2 percent, or 2p to 49.5p, also said the rock grade was slightly higher than estimated.
Rumor has it that Easyjet may need to reach out to shareholders again to raise more cash, despite the sale of £ 420m worth of shares in June.
Stelios said that as long as Easyjet maintains its relationship with Airbus, he will not give them “a cent more”, especially when “there is no chance of an early restart of normal flight”.
The bosses will come under fire at the annual meeting today when it becomes known that Stelios has used his roughly 30 percent participation to vote against the re-election of any board member.
Easyjet rose 2.4 percent, or 17.8p, to 775p on a rebound that propelled other travel and leisure stocks on Monday.
IAG, the owner of British Airways, rose 5.8 percent, or 8.35 pence, to 152.25 pence on the FTSE 100, while Hyve among the organizers of small cap conferences rose 7.9 percent, or 8 pence to 109 pence and the Saga cruise group grew 6.7 percent. or 14.8p to 236p.
However, cruise mate Carnival missed this after a new ship was delivered at a time when the nautical vacation was again in danger. Shares fell 0.3 percent, or 4 pence, to 1,291 pence.
The Footsie rose 0.6 percentage points or 36.84 points to 6453.16 points, while the FTSE 250 rose 1.3 percent or 258.61 points to 19,950.72 points, despite ministers making no agreements during trading hours yesterday had hit Brexit and the reopening of the borders.
While stock traders managed to shake off the growing truck lines in Kent, oil traders were still confused when border closings and flight bans on British nationals seemed to disrupt what many had predicted spike in oil consumption.
Brent crude is still hovering around the $ 50 a barrel mark. Engineering firm Weir Group rose 0.7 percent, or 13.5 pence, to 1955.5 pence, despite delays in selling its £ 341 million oil and gas arm. It should be completed this year but will instead be done in early 2021.
In another energy deal, SSE will sell its stake in gas fields in the North Sea to Viaro Energy for GBP 120 million. SSE changes strategy to focus on renewable energy and plans to outsource £ 2 billion worth of non-green energy assets.
Clearance was recently given to begin construction of the world’s largest wind farm off Hull, and plans to invest £ 7.5 billion in green infrastructure over the next five years. The shares rose 1.8 percent, or 25.5 pence, to 1,485.5 pence.
While Astrazeneca’s scientists were desperate to test whether the vaccine would protect against the mutant strain of Covid, he suffered a setback with his experimental drug Amgen.
Astra lost 1.5 percent, or 112 pence, to 7328 pence after failing to meet the goal of a late-stage study to reduce patient reliance on steroids.