Member Info for redskies

Why is Castlelake interested in EZJ? Here are some facts: EZJ has around 208 aircraft worth £5bn against a market cap of around half of that. it has 287 airbus delivery slots plus another 100 options. Existing stock is A320 narrow body the most liquid plane type in the world. all engines are CFM avoiding the problematic Pratt and Whitney type. 86% of the newer neo sub fleet is owned outright. EZJ is replacing a319s with a321 neos by 2029, which burn 30% less fuel delivering operating cost savings of around £250m annually. EZJ holidays grew profiy 50% in H1 2026 and is targeting £450m by 2030. The market is significantly undervaluing EZJ and thats why its assets are being eyed by PE firms.

Jermt fuel and currency is hedged for the next 12 months and beyond. at a decreasing amount but still significant hedge. I dont see trump can sustain this for much longer maybe a couple of weeks so would expect the oil prices to drop back well before the hedges cover drops. furthermore as we've seen before, people are willing to prioritise holiday breaks in terms of spending and are more likely to trade down from long to short haul.

For some reason the link didn't post. see bbc for the article.

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With the middle east out and long haul fares likely to rise plus impact on cost of living household pressures, i would think this would position easyjet well to benefit from the current situation. we've all seen how trump operates, maximin pressure and then backs down when he cant get what he wants. we've seen it with russia, greenland, china, Europe etc. he wants quick results and i would expect he'll call it a day any day now. below link clarifies the ezj position on fuel hedging which also places them well for the coming season. however I dont expect the conflict will last much longer seeing where things are and how trump has shown he operates. the share price is massively oversold with panic and mostly speculation and shorters and no way reflects the reality on the ground.

www.reuters.com/business/energy/how-airlines-have-hedged-against-fuel-price-increases-2026-03-12/#:~:text=EASYJET%20(EZJ.L)%20%2C,%24671%20per%20metric%20ton%2C%20respectively.