EasyJet plc - Revision history

>Khushboo: /* Impact of COVID-19 and Recovery Process */

2023-08-10T14:04:58Z

Impact of COVID-19 and Recovery Process

← Older revision		Revision as of 15:04, 10 August 2023
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	'''Sustainability'''		'''Sustainability'''

	Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation. easyJet plans to achieve sustainability through the combination of six drivers: fleet renewal, operational efficiencies, airspace modernisation, sustainable aviation fuel (SAF), zero carbon emission aircraft and carbon removal technology. easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related costs. They will also use Sustainable Aviation Fuel (SAF) in line with their net zero roadmap and have signed a long-term agreement with their main fuel supplier: Q8Aviation for the next 5 years. Currently SAFs are known to be more expensive than traditional jet fuel.		Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation. easyJet plans to achieve sustainability through the combination of six drivers: fleet renewal, operational efficiencies, airspace modernisation, sustainable aviation fuel (SAF), zero carbon emission aircraft and carbon removal technology. easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related operating costs. They will also use Sustainable Aviation Fuel (SAF) in line with their net zero roadmap and have signed a long-term agreement with their main fuel supplier: Q8Aviation for the next 5 years. Currently SAFs are known to be more expensive than traditional jet fuel, so it carries the burden of affecting operating profits. Nonetheless these sustainability initiatives carries the potential of becoming key differentiator in the long term.

	== Market ==		== Market ==

>Parthgore: /* Discounted Cash Flow Model */

2023-08-02T10:07:52Z

Discounted Cash Flow Model

Show changes

>Khushboo: /* Impact of COVID-19 and Recovery Process */

2023-08-01T23:31:39Z

Impact of COVID-19 and Recovery Process

← Older revision		Revision as of 00:31, 2 August 2023
Line 89:		Line 89:
	'''Sustainability'''		'''Sustainability'''

	Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation.		Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation. easyJet plans to achieve sustainability through the combination of six drivers: fleet renewal, operational efficiencies, airspace modernisation, sustainable aviation fuel (SAF), zero carbon emission aircraft and carbon removal technology. easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related costs. They will also use Sustainable Aviation Fuel (SAF) in line with their net zero roadmap and have signed a long-term agreement with their main fuel supplier: Q8Aviation for the next 5 years. Currently SAFs are known to be more expensive than traditional jet fuel.


	~~easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related costs.~~

	Recently, EU agreed to world’s largest green fuels mandate for aviation. The green fuels law for aviation – known as ReFuelEU – stipulates that, from 2025, all flights departing from an EU airport will be obliged to uplift a minimum share of sustainable aviation fuels (SAF), starting at 2% in 2025. In 2030, the percentage will rise to 6%, and gradually to 70% by 2050.
	== Market ==		== Market ==

>Khushboo: /* Risks */

2023-07-31T09:10:32Z

Risks

← Older revision		Revision as of 10:10, 31 July 2023
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	* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.		* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.
	* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker,' 2022 report, ~~42% of respondents worldwide reported a decline in their financial situation during~~ the ~~year. The~~ rising inflation rates posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people s are still putting holidays near the top of our discretionary spending priorities.		* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker,' 2022 report, the rising inflation rates posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people are still putting holidays near the top of our discretionary spending priorities.
	* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%		* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%
	* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.		* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.

138.250.203.241: /* Impact of COVID-19 and Recovery Process */

2023-07-30T22:45:58Z

Impact of COVID-19 and Recovery Process

← Older revision		Revision as of 23:45, 30 July 2023
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	'''Sustainability'''		'''Sustainability'''

	Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage.		Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation.

	~~Sustainability~~ in ~~aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels,~~ more efficient ~~operations and airspace~~, ~~the use of robust~~ carbon ~~offsets~~ and ~~investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation~~. Recently, EU agreed to world’s largest green fuels mandate for aviation. The green fuels law for aviation – known as ReFuelEU – stipulates that, from 2025, all flights departing from an EU airport will be obliged to uplift a minimum share of sustainable aviation fuels (SAF), starting at 2% in 2025. In 2030, the percentage will rise to 6%, and gradually to 70% by 2050.
			easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related costs.

			Recently, EU agreed to world’s largest green fuels mandate for aviation. The green fuels law for aviation – known as ReFuelEU – stipulates that, from 2025, all flights departing from an EU airport will be obliged to uplift a minimum share of sustainable aviation fuels (SAF), starting at 2% in 2025. In 2030, the percentage will rise to 6%, and gradually to 70% by 2050.
	== Market ==		== Market ==

138.250.203.241 at 19:35, 30 July 2023

2023-07-30T19:35:17Z

← Older revision		Revision as of 20:35, 30 July 2023
Line 87:		Line 87:
	In summary, EasyJet faced substantial losses due to the COVID-19 pandemic, but the news of effective vaccines resulted in a surge in bookings. The airline implemented various measures to manage its finances, including raising cash and reducing costs. With bookings for peak periods returning to pre-pandemic levels and an optimistic outlook for the next summer season, EasyJet appears to be on a path of recovery, although challenges related to stimulating demand during quieter times and managing rising costs persist.<ref>https://www.theguardian.com/business/2022/nov/29/easyjet-bookings-covid-losses-tickets</ref>		In summary, EasyJet faced substantial losses due to the COVID-19 pandemic, but the news of effective vaccines resulted in a surge in bookings. The airline implemented various measures to manage its finances, including raising cash and reducing costs. With bookings for peak periods returning to pre-pandemic levels and an optimistic outlook for the next summer season, EasyJet appears to be on a path of recovery, although challenges related to stimulating demand during quieter times and managing rising costs persist.<ref>https://www.theguardian.com/business/2022/nov/29/easyjet-bookings-covid-losses-tickets</ref>

			'''Sustainability'''

			Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage.

			Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation. Recently, EU agreed to world’s largest green fuels mandate for aviation. The green fuels law for aviation – known as ReFuelEU – stipulates that, from 2025, all flights departing from an EU airport will be obliged to uplift a minimum share of sustainable aviation fuels (SAF), starting at 2% in 2025. In 2030, the percentage will rise to 6%, and gradually to 70% by 2050.
	== Market ==		== Market ==

>Khushboo: /* Competition */

2023-07-30T18:23:34Z

Competition

← Older revision		Revision as of 19:23, 30 July 2023
Line 478:		Line 478:

	* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.		* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.
	* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year.		* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker,' 2022 report, 42% of respondents worldwide reported a decline in their financial situation during the year. The rising inflation rates posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people s are still putting holidays near the top of our discretionary spending priorities.
	* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%		* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%
	* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.		* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.

>Khushboo: /* Risks */

2023-07-30T18:19:00Z

Risks

← Older revision		Revision as of 19:19, 30 July 2023
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	# '''Building Europe's best network:''' easyJet's ambition is to build the best network in Europe. To do this, they will continue to lead in their core markets, building scale in Europe’s largest and most attractive travel markets. This will offer customers choice in terms of destination and schedule and will ensure highly efficient operations. In many cases, easyJet’s core markets are slot-constrained and we will continue to grow in these markets by building the slot portfolio as opportunities arise and through up-gauging as the average seats per aircraft increases in coming years. In addition easyJet will continue to build out their destination bases in top leisure locations. <ref name=":2">https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/results-centre/2022/annual-report-2022.pdf</ref>		# '''Building Europe's best network:''' easyJet's ambition is to build the best network in Europe. To do this, they will continue to lead in their core markets, building scale in Europe’s largest and most attractive travel markets. This will offer customers choice in terms of destination and schedule and will ensure highly efficient operations. In many cases, easyJet’s core markets are slot-constrained and we will continue to grow in these markets by building the slot portfolio as opportunities arise and through up-gauging as the average seats per aircraft increases in coming years. In addition easyJet will continue to build out their destination bases in top leisure locations. <ref name=":2">https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/results-centre/2022/annual-report-2022.pdf</ref>
	# '''Transforming revenue:''' easyJet has delivered exceptional revenue performance, especially in the ancillary revenue area. Continuing to develop and build in this area is a key priority in delivering the strategy, ensuring that they are able to maximise the revenue potential of the market. To deliver on this priority easyJet will continue to invest in its strong revenue management capability, ensuring that its market-leading position is maintained by developing new industry-leading capabilities which creatively leverage new sources of data and optimise ticket and ancillary revenue together. Additionally, they will continue to invest in diversifying our sources of revenue with an ongoing focus on easyJet holidays.<ref name=":2" />		# '''Transforming revenue:''' easyJet has delivered exceptional revenue performance, especially in the ancillary revenue area. Continuing to develop and build in this area is a key priority in delivering the strategy, ensuring that they are able to maximise the revenue potential of the market. To deliver on this priority easyJet will continue to invest in its strong revenue management capability, ensuring that its market-leading position is maintained by developing new industry-leading capabilities which creatively leverage new sources of data and optimise ticket and ancillary revenue together. Additionally, they will continue to invest in diversifying our sources of revenue with an ongoing focus on easyJet holidays.<ref name=":2" />
	# '''Delivering ease and reliability:''' To deliver ease and reliability, easyjet will continue to build on their areas of strength, in particular the digital booking and on-the-day experience and exceptional onboard service. This will be supported by investments in other key areas of the customer journey, in particular the airport experience, and continuing to improve On-Time Performance and reduce cancellation rates. Sustainability continues to be a priority for easyJet and its customers. The net zero roadmap recently launched demonstrates their commitment to leading in an area which is likely to be a key purchase driver in the future.<ref name=":2" />		# '''Delivering ease and reliability:''' To deliver ease and reliability, easyjet will continue to build on their areas of strength, in particular the digital booking and on-the-day experience and exceptional onboard service. This will be supported by investments in other key areas of the customer journey, in particular the airport experience, and continuing to improve On-Time Performance and reduce cancellation rates. They gauge this mission through KPIs such as Customer satisfaction (%) and On-Time Performance (%). Sustainability continues to be a priority for easyJet and its customers. The net zero roadmap recently launched demonstrates their commitment to leading in an area which is likely to be a key purchase driver in the future.<ref name=":2" /> Their KPI to measure sustainability is CO2 emissions per passenger kilometre (g).
	# '''Driving a low-cost model:''' a highly efficient point-to-point network to deliver simplicity in operations and scale within airports. Providing disaggregated products and relevant bundles of products, allowing customers to pay for what they value. Ensuring they have a fleet with exceptional fuel efficiency and low maintenance costs. And most importantly, it means always challenging cost, ensuring that where easyJet spends it delivers tangible value to our customers. <ref name=":2" />		# '''Driving a low-cost model:''' a highly efficient point-to-point network to deliver simplicity in operations and scale within airports. Providing disaggregated products and relevant bundles of products, allowing customers to pay for what they value. Ensuring they have a fleet with exceptional fuel efficiency and low maintenance costs. And most importantly, it means always challenging cost, ensuring that where easyJet spends it delivers tangible value to our customers. <ref name=":2" />

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	* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.		* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.
	* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker 2022 report,' 42% of respondents worldwide reported a decline in their financial situation during the year. The rising inflation rates posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people are still putting holidays near the top of their discretionary spending priorities.		* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year.
	* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%		* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%
	* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.		* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.

>Khushboo: /* Risks */

2023-07-30T17:58:42Z

Risks

← Older revision		Revision as of 18:58, 30 July 2023
Line 478:		Line 478:

	* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.		* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.
	* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker 2022 report,' 42% of respondents worldwide reported a decline in their financial situation during the year. The rising inflation rates ~~also~~ posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people are still putting holidays near the top of their discretionary spending priorities.		* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker 2022 report,' 42% of respondents worldwide reported a decline in their financial situation during the year. The rising inflation rates posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people are still putting holidays near the top of their discretionary spending priorities.
	* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%		* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%
	* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.		* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.

>Khushboo: /* Risks */

2023-07-30T17:53:53Z

Risks

← Older revision		Revision as of 18:53, 30 July 2023
Line 478:		Line 478:

	* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.		* Airlines are vulnerable to fluctuations in fuel prices, which can significantly impact operating costs; easyJet has hedged fuel at a higher spot rate than the current price. If price keeps decreasing, easyJet will have greater losses.
	* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year.		* Economics conditions, such as the cost of living crisis the UK is currently suffering from, can result in downturns in demand. With both the interest rate (5%) and inflation (8.7%) increasing, demand is likely to be lower this year. According to Deloitte's 'Global State of the Consumer Tracker 2022 report,' 42% of respondents worldwide reported a decline in their financial situation during the year. The rising inflation rates also posed a potential threat to travel demand in the upcoming period. Nevertheless, the travel industry received a glimmer of hope as people are still putting holidays near the top of their discretionary spending priorities.
	* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%		* In the last few years, there has been an increase in competition in the Low cost carrier sector. Companies such as Ryanair and Wizz Air have seen their market shares increase since 2019 and COVID, whereas easyJet’s market share has been relatively stagnant at 7.5%
	* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.		* Natural disasters, extreme weather events, or health crises (e.g., pandemics) can disrupt travel plans and reduce demand for air travel, impacting the airline's revenue and profitability.