The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
From 1st Quarter Results:
-For April and May the normal run-rate cash operating costs have been reduced from €440 million per week to €200 million per week
-"We had a strong balance sheet and liquidity position coming into this crisis. We are taking all appropriate actions to preserve cash, reduce and defer both capital spending and operating costs and secure additional financing in order to strengthen and maintain our liquidity. At the end of April our liquidity stood at €10.0 billion.
Is it fair to assume the run-rate in June wouldn't be dissimilar from the April/May rate with employees furloughed and a similar number of planes in the sky from April/May?
Now in July BA are resuming some services so assume that the run-rate will increase, but forward-bookings are increasing as more people look to book travel later in July/August or later in the year. Given IAG/BA haven't sought government loans/equity/other assistance anywhere near to the levels seen in Germany or USA.... why would a rights issue be imminent when there are clearly other options on the table, especially super super cheap Govt borrowing? BA are working through employee restructuring and they aren't going to launch a rights issue to fill the coffers in the midst of redundancies and re-contracting staff.
Qatar Airways owns 25.1% of IAG and I think they will be looking closely at expanding their holding at these levels.
We’re excited to announce that we'll be flying to more of our network this month. Throughout July, we’ll resume flying to additional domestic, short-haul and long-haul destinations, including those where quarantine restrictions have been lifted. We’ll be flying routes such as Malaga, Oslo, Barbados, Tokyo and Munich will be added back to our schedule.
The UK is likely to publish a list of around 75 countries that will be exempt from travel quarantine rules from Monday, government sources have indicated.
Currently most people arriving in the UK from anywhere, apart from the Republic of Ireland, have to self-isolate for two weeks.
Last weekend the government said it would relax its advice on travel abroad and would rate countries as either green, amber or red, depending on the prevalence of the virus.
Previously the government had indicated it was working to establish a relatively small number of travel corridors, where people would not have to self-isolate on arrival in the UK.
The list with the countries low or very low risk is likely to be published by the end of this week, according to government sources. Some of the countries on this new list do still have restrictions on people travelling from the UK.
Other higher risk countries, like the US, will be categorised as red.
It seems that agreeing a small number of travel corridors with specific countries was fraught with risk. The Scottish government has expressed concern about plans to relax the quarantine and is still in discussion with officials and politicians in Westminster.
Skies are slowly starting to re-open. Much reduced frequency but some of those approved countries are long-haul routes and more long-haul destinations likely to be added to the second list of approved countries. Appetite to travel will certainly meet the reduced capacity so should see decent load factors. Surely there will be an IAG statement on July/August flying to reflect the recent announcements? USA will be no-go for at least the next 6 weeks but I think you might start to see reopening on selected routes to certain states like NYC and Boston as their numbers align to EU/UK new infection rates. Intra-Europe flying resuming will get AerLingus, Iberia and BA planes back in the sky and all the while the Furlough scheme is covering grounded much of the grounded crew.. New part-time furlough will enable more agile reopening of routes with reduced cost exposure. Still plenty of uncertainty but with more widely available PPE, quicker/instant testing, etc.. air travel will resume and IAG will adapt.
Been watching this since admission. Recent placing bolsters cash position and allows for further expansion. Large growth in revenue will only continue in current climate with hot demand for antibody R&D. Best of luck to all.
spacecentre15 - this is a Flybe share chat board so take your very strong and well articulated argument "they need us more than we need them" to the letter section of the Sun or other rag worth of such strong and reasoned argument.
"Ironic" - any genuine shareholder of any UK-listed company, especially Flyb, would be fundamentally opposed to "no deal". Why don't you write to Flybe board and ask them what impact WTO rules, including default tariffs would have on Flybe's costs, including acquiring new aircraft, fuel, maintenance, parts, labour, goods (incl. on-board "duty free" products etc) and when you get a reply, share it with us all and you can show us where Flybe would be "better off" financially.
Neither. They are statements of "opening position". Under Rule 8.3 of Takeover code as the BOD has announced we are in an "offer period", every shareholder holding 1% or more must, within 10 business days, announce their exact holding.
If IAG make an offer there would be minimal cost in updating logo to FlyBa :)
BBCR4 and other bulletins reporting "Flybe in talks with several operators about a potential sale"... coupled with the positive financials (Net Assets approx 5x the current MCap) will make this an interesting few weeks. Losses aren't to be dismissed but strong fundamentals. Interested to know what operators are in discussions. Landing slots and regional routes for onward connections are valuable to global airlines. Best of luck to all.
Flybe, Europe’s largest regional airline, started operating its 2018-19 Winter schedule this past weekend (Sunday 28th October 2018) featuring a total of 14 routes with a choice of up to 272 flights a week from George Best Belfast City Airport.
From the 8th February 2019, passengers will see an increase in the number of flights operating between Belfast and Glasgow with additional services operating on Mondays, Thursdays and Fridays, bringing frequency up to five times a day.
In addition, Flybe offers the most comprehensive programme of flights between Belfast and Manchester with up to seven flights a day operating from the airport that, conveniently, is easily accessible and just 10 minutes from the centre of Belfast.
Key highlights of Flybe’s 2018-19 Winter schedule from Belfast City:
- Total of 14 routes including Doncaster Sheffield to Belfast City operating for the first time in winter
- Up to 7 flights a day to Manchester and Birmingham
- Increased flights to Glasgow from 8th Feb 2019
- Up to 6 flights a day to London City
- Return of extra seasonal frequency 21st December 2018 – 3rd January 2019 to and from Aberdeen, Birmingham, Edinburgh, Exeter, Glasgow and Leeds Bradford
Flybe has also updated its on board Cafe Flybe menu for winter that includes a new range of the popular Graze snacks with vegan friendly options, and a healthy apple and blackcurrant Fruit Shoot drink for children made with real fruit that has no added sugar, artificial colourings or flavourings.
Flybe’s three franchise partners Blue Islands, Eastern Airways and Stobart Air also started operating their winter schedules this weekend.
http://www.belfastcityairport.com/News/FLYBE-LAUNCHES-2019-WINTER-SCHEDULE-BELFAST-CITY
Not invested but have watched FLYB for several years. The current MCap values FlyBe at US$49m. Putting the strong domestic UK traffic to one side, seems like an attractive price for a US or foreign airline (when pound is so weak) to buy a route network in the UK which they could connect to their own... But - news in Cyprus today of another airline reaching the end of the line doesn't help investor confidence.