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So ftse12, I'm just curious about why you'd rather talk about posters than easyjet. Do you think that easyjet hasn't lost £1.1bn this last twelve months? Do you think that easyjet is making money now even though they refused to publish guidance on the current quarter, or do you agree that easyjet is losing money hand over fist and will continue to do so for the rest of this year due to omicron? (If you want to talk about something other than easyjet, maybe you should join a social chat club.)
Whichever way you try to slice and dice it hexam, the losses are enormous. Revenue of £1.4bn but costs excluding fuel of £2.2bn and fuel costs of £371m; there's a £1.1bn loss right there. What on earth makes you think that with much of Europe in lockdown there are more planes flying? Easyjet withdrew their update for this quarter for good reason - it's nothing but bad news.
I don't think losing £1.1bn is good news. Where did I say that? I see as you have lost one argument you have changed to another but are still spouting nonsense.
"Practically the only cash coming in is from shareholders paying for the rights issue". Again, false. Revenue last year was over £1.4bn i.e. more than the cash raised from the rights issue (£1.1bn). For this year, with more planes flying, the cash coming through the door will be much higher - unless there are full and lengthy lockdowns again which seems very unlikely.
Good to see though that you are now saying a 'massive' loss rather than '£500m'. I agree that it is likely to be a loss for Q1 but will be surprised if it will be 'massive' on any reasonable interpretation of the word.
hexam, practically the only cash coming in is from shareholders paying for the rights issue and new loans. The business is losing money every day. If you think a £1.1bn loss for the year is good news, you should perhaps look around the stockmarket to see if that's normal. Most companies like to make a profit and payout dividends.
The skies over our major cities are clear today. Very few planes flying. Most of Europe is in lockdown to some degree. Events are being cancelled everywhere. easyjet is guaranteed to be losing cash throughout this quarter, and we had no update on its progress. In January when the Q1 report comes, I think it's obvious we will see a continuing massive loss. The omicron news looks bad - people are being re-infected whether they've had a vaccine or delta covid. That means more deaths most likely, here in Europe. I think summer will be a disappointment again.
For goodness sake Trumpet, now you have changed to profit. Yes that was a £1.1bn loss for the whole of last year. That is not the same as cash flow. Please make up your mind.
You said cash burn was £36m per week. That is false.
You say losses for the first quarter will be £500m because cash burn was £36m per week. That is false both because cash burn wasn't £36m per week and you cannot simply translate cash burn into profit/loss.
Anyway, just look at how silly your conclusion is. You are suggesting that easyjet is going to lose £500m in one quarter with planes flying when it lost £1.1bn last year in four quarters with far fewer planes flying and for a significant time none at all. As I said - nonsense.
northscot, you are the worst liar on here, deliberately misleading people. Today you are celebrating the 'big swings' as the share price goes negative again. This forum is supposed to be about discussing the company and its prospects, not your childish playground antics of abusing other posters.
Net debt went down a little by £200m but only because shareholders pumped in another £1.1bn of cash through the rights issue. Take the rose-tinted goggles off my friends. easyjet is losing money hand over fist. Omicron will unfortunately keep the cashburn going. Next year there will probably be another cash-call.
No hexam, you are still wrong. Headline loss was over £1.1bn. No matter what way you dress it up, easyjet is losing a ton of cash every week.
No Blue you are wrong - the "fixed costs plus capex basis" IS the scenario of no planes flying. That's what it means.
You get a better idea of actual cash flow from the statement "Strong cash management also meant that operating cash generation was broadly flat in H2 with a £10 million cash outflow versus £1,438m in H1."
The total cash flows are clearly presented elsewhere in the accounts and bear no relation to £36m per week.
All companies burn cash. Its called cost of sales.
The question is, how much of it is covered by revenue.
hexam, maybe you should take the rose-tinted goggles off and actually read the results. easyjet will be burning cash for the rest of this year, judging by the omicron data which is coming out now. The shares are seriously overvalued.
No Hexam, you are wrong. It's easyjet's own words from the full-year results just published:
"As a result, cash burn (on a fixed costs plus capex basis) during 2021 was GBP36 million per week on average, outperforming the guidance for GBP40 million per week. easyJet paid a further GBP455 million of customer refunds during 2021 (2020: GBP863 million)."
This is nonsense. The cash burn is not £36m per week. This is amount of cash outgo in the scenario that NO planes are flying. So projecting a quarterly loss figure from this number is simply ridiculous.
No update on current trading but the cash burn of £36m a week for the year suggests another half billion pounds will be lost by the time we get to the end of this quarter (31st Dec). Easyjet seems to have written off winter and spring. Omicron will kill the summer trade too. The shares are very overvalued on any earnings basis. Just rose-tinted optimism keeping them up at the moment.