S&P lifts easyJet

S&P said it upgraded its ratings on easyJet plc and its senior unsecured notes to BBB from BBB-.

“The upgrade reflects the recovery in easyJet's passenger traffic and strong yields. In Q1 fiscal 2023, easyJet reported strong passenger volumes growth of 47% year-on-year and its total yield (including ancillary yield) grew by about 20% to £79 per passenger. The airline anticipates that its strong yield trend will continue for the remainder of fiscal 2023, with Easter sold ticket yields up 24% relative to fiscal 2019 (pre-pandemic). The yields reflect strong demand for leisure travel and still constrained capacity deployment by European airlines,” the agency said in a statement.

S&P said it now forecasts that much higher capital expenditures for new aircraft in fiscals 2024-2025 will lead to negative free operating cash flow and higher net debt but expects easyJet’s adjusted FFO to debt to stay sustainably above the 40% threshold for a BBB rating.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.