The London-based air carrier EasyJet (EZJ) — best known for grabbing you those dirt-cheap weekend trips to Spain — is out looking for money (again) with its recent share dump. The discount airline plans to raise $1.4b from a share sale after having gained more than $7.6b in liquidity since the start of Covid-19. As air traffic was impacted due to the pandemic, a recovery in travel has been slow with European discount carriers competing against each other on price. This has led to airlines collectively in Europe posting a $4.6b loss in Q2 2021.
EasyJet’s call for cash most likely is a buffer for the upcoming winter months when it expects bookings to drop. The sell-off also comes after a rejected takeover bid from a competitor – reasons for the turndown from EasyJet being that the offer was all-stock and lowly priced.