Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Hi Jay, a good and tricky question! I bought J2 last March just after the 1st lockdown was announced. I also bought Tui ,although I firmly believe J2 will in the longer term perform better as they are undoubtedly a lean, efficient company with a good business ethos. When iag were down to around 99p per share I seriously considerd buying some but dithered and watched the share price double so perhaps take my thoughts with a pinch of salt! My concern with iag is that the majority of their profit comes from long haul flights. Given that the pandemic in some of these destinations is still out of control this is likely to impact the number of viable long haul routes. In addition to this aircraft full of economy passengers do not contribute a lot to the overall cost of operating a service. It is the business/ first/ premium classes passengers that contribute a much higher % of revenue and typically these are passengers travelling on business. I suspect the jury is still out as to if the same number of business travellers will return once restrictions are eased OR given that businesses in a recovery mode will want watch expenditure and therefore possibly continue to use to a greater degree on line business meetings which would inpact the airlines revenue? Jet 2 i feel will ultimately make a better return than iag even though they have recovered well since the low share of 200p in March 2020, but both will have bumps along the way as travel restrictions change on a regular basis for the foreseeable future. Easy jet share price has also recovered quite well from around a low of 440p in March 2020 and as they are a short haul operator with a modern fleet based in several countries which gives them some protection against a specific country (the uk) going into another lockdown. However I do consider overall that Jet 2 is the jewel in the crown of European airline operators. I do hope that this may help a little and of the all I my own opinion.
It is looking more positive for the Travel and aviation industry and providing this continues Jet 2 is probably the best placed British aviation company to benefit. Add to the enormous pent up demand for 2021 the fact that oil prices in 2020 were an average of €20 per barrel lower when hopefully jet2 forward bought a considerable amount to cover it's future flying means that one of the biggest costs has been considerably reduced which should translate directly to the bottom line and substantially improve margins.
Re Hays travel, they are a Travel agent, NOT a tour operator! They are the biggest independent agent in the country, followed by Tui which is vertically integrated and mostly sell just Tui products whereas Hays Travel actively promote and sell Jet 2 holidays along with other independent tour operators and if they must Tui products. Therefore IF Hays goes under and at the moment there is little indication that they will, it would actually have a negative effect on J2 as they are probably the biggest customer of Jet2. I am pretty sure both companies will survive and eventually prosper.
Hopefully the improvements and expansion will be approved and the objections by residents who moved to the area knowing full well that there was an international airport close by will be dismissed. I am not sure though that an approval will help the share price as although it is jet2 's original and home base airport they do fly from 9 other airport's, some with more routes. I have a great deal of respect for the airline and was honoured to be invited on their inaugural flight from Leeds to Amsterdam in 2002. I think what will definitely help the share price and the decimated Travel and Aviation industry is a clear path out of the pandemic which will allow brilliant, well managed Jet2 to get back in the air earning much needed revenue and satisfying the huge currently frustrated demand for flights and holidays.
Yes I was both disappointed and surprised by the big drop today especially on the back of last week's. Whilst the proposed quarantine restrictions on arriving passengers into the UK , J2 had already announced over a week ago that their fleet was grounded until 25 March so these new restrictions should only have had minimal impact as hopefully (?) By early April the restrictions might be less severe and J2 can get back to what it does brilliantly, flying and taking people on their holidays!!,
I have contemplating the very same question and kept thinking as the share price rose from around £2 to £15 and as it passed new (current) highs I should sell but didn't and watched it go to the recent £15. Obviously with hindsight I should have sold at £15 but when it passed what I thought was a new high (£10.00) for eg) and didn't sell I was pleased I hadn't. It is for a relatively inexperienced investor such as myself it is a difficult call to make and appreciate the many helpful posts on this BB. I do though know that Jet 2 is a very well run, cost conscious, relatively strong financially with a lot of good staff and am pretty confident that it will survive the current difficult situation and prosper and will go above the pre pandemic highs of around £20. However in the meantime it could go lower and sadly I am not experienced enough to know whether to hold or sell and then buy back in later. My average is £4.40 so still nicely in profit but not quite as much as last week. Good luck to all fellow investors.
I have just spoken to my on line broker, Equinti and they advise that they have this morning requested the exact number of shares that their clients will be entitled to and expect to be in a position to advise their clients tomorrow (Tuesday) that they are available to be taken up if required. This is in line the the timetable advised, apparently. I hope this helps.
Another sensible move by J2 .Clearly the level of flying from their 9 current bases in 2021 will be less than anticipated, pre covid which would result in under utilisation of their fleet resulting in higher operating costs, reduced revenue and margins. Therefore initially moving 3 of their aircraft to a new and may I say very vibrant new base where Thomas Cook had several based aircraft increases fleet utilisation, revenue and margins. Jet 2 will emerge from this crisis as one of the strongest airlines in Europe and probably the biggest UK package holiday company . I can only see the share price generally going northwards. Only my opinion so dyor and good luck.
I am not too sure how this will affect Jet2. It is undoubtedly another blow to the already decimated aviation and travel industry with many already teetering on the brink of bankruptcy and this will probably be reflected in the lower share price of many tomorrow. However whilst Jet 2 will probably be impacted a few things need to be considered. 1, the airline is one of the best run certainly in Europe if not the world with fantastic staff. 2 most of its winter flying program, ski special European Christmas markets flights , seasonal short breaks to New York and many as hoc charters had already been cancelled and presumably this was already reflected in the current share price? Therefore the only real loss of revenue in the next month are the Canary islands and Maderia flights. 3. Whilst there was probably a considerable demand for these flights and historically the first 2 weeks of November are popular the last 2 weeks of November and the 1st 2 weeks of December are usually acknowledges as shoulder and off peak weeks and therefore attract lower prices. I wonder if therefore the reintroduction of the furlough scheme and therefore lower staff costs will go some way towards off setting the loss of revenue from not flying? Add to this is the hope that the higher revenue flights over Christmas and New year can still operate which with the other points stated MAY lessen the impact on the share over a period of weeks and not be as catastrophic at least for Jet 2 as some may fear? Sadly however in this terrible period nothing behaves normally so only time will tell! I wish Jet 2 , it's staff and investors the best of luck.
I too have been amazed at the share price recovery and have bought a few along the way but missed the very low point back in March and now average £5.50 so not too bad but should have done better. The reason for the steep climb Oct/Feb was the demise of Thomas Cook which removed several million air seats from the market and put pressure on seat rates. Dart increased their capacity to cover some of the shortfall. Hayes travel ( the UK's biggest independent retail travel agent ) a few weeks later bought most of the closed Thomas cook shops (around 500) which in turn massively increased Darts selling outlets at no cost to them.Just before Cooks collapse the Dart share price was around £7.50 and quickly rose to£19.43. Of course I hope it does the same again as they have some great staff and is a very well run company, but a lot will depend I guess is how the virus restrictions play out and how soon load factors return to pre covid levels. Imo.
What a ridiculous argument, Trent 700. it is not just the uk that will stop flights to Spain, most of Spain has closed down so why would anyone want to go from anywhere? Which airlines do you think can provide leased aircraft if most of the uk airlines go and do you not think most of the European airlines will also struggle. Titan airlines in the uk are about the only ones left in the uk which might, if they manage to survive, have suitable aircraft to fill the void left, but have no where near enough capacity to cover the shortfall and if You, Norwigian, Jet 2, Easyjet not survive there is no airline in Europe if not the world that could fill the void. My hope is that J2, easy, Norwigian, survive as they are well run, efficient, airlines and none of this could have been predicted 3 months ago, but what do I know with only 50 years in the brilliant uk Travel business!!