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easyJet flies lower after Brexit, strikes and cancellations

A confluence of factors aren't making it easy for the budget carrier, but its net cash position should support the dividend
July 26, 2016

An 8.3 per cent drop in total revenue per seat on a constant-currency basis at budget carrier easyJet (EZJ) was met with a 6 per cent share price fall. Bad news considering its near-30 per cent Brexit-induced slump last month. With terrorism-related incidents and strikes also blighting the business, it's hard to know when it will catch a break. But all airlines are facing these issues.

IC TIP: Buy at 1044p

In terms of the company itself, management has a tight handle on costs - on a per-seat basis, excluding fuel, these were flat. The number of business passengers grew by 9 per cent in the quarter and easyJet has £368m of net cash, so its dividend looks safe for now.