Why I think the easyJet share price could gain from the Thomas Cook collapse
Why I think the easyJet share price could gain from the Thomas Cook collapse. The failure of Thomas Cook earlier this year left a hole on the package holidays business, and it’s one that easyJet (LSE: EZJ) is hoping to fill. And in what sounds like it might be an even more ambitious goal, easyJet says it intends “to become the world’s first major airline to operate net-zero carbon flights by offsetting the carbon emissions from the fuel used on the flights.”. Full-year results were in line with expectations, after revenue to 30 September came in at £6,385m, 8.3% ahead of 2018’s £5,898m. And though headline pre-tax profit dropped 26% from last year’s £578m to £427m, it was in the upper half of the airline’s guidance range of £420m to £430m. These might sound like minor differences, but in the cut-throat world of cut-price airlines, a few pennies saved per seat can make a meaningful difference to bottom line earnings and to the cash available for dividends. And speaking of dividends, this year’s amounts to 43.9p per share, down from the 58.6p paid last year, but close enough to expectations.