Investors' Chronicle
North Sea winners, airline stocks & shareholder democracy: The Companies and Markets Show
Nov 29, 2024
This week, Michael Fahy, an airline industry expert, dives into the recovery of Jet2 and EasyJet as travel demand surges post-pandemic, discussing their reputation and performance challenges. Alex Hamer, a commodities specialist, tackles the North Sea's shifting landscape, examining new tax clarity and operational hurdles amid the energy transition. The conversation also covers the innovative digital voting changes at AJ Bell, highlighting the importance of shareholder democracy and how it shapes investor engagement for the future.
33:06
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Quick takeaways
- Airlines Jet2 and EasyJet have adapted successfully to post-pandemic demand while facing challenges of rising costs and consumer spending habits.
- The North Sea oil and gas sector is navigating regulatory uncertainties and shifting investment strategies, focusing on maximizing revenue from existing assets amidst environmental challenges.
Deep dives
Resilience of Airlines Amid Changing Demand
Airlines like Jet2 and EasyJet have experienced significant growth due to the post-pandemic travel surge, with Jet2 reporting a notable 15% top-line growth and increased profitability in its recent results. While demand remains solid, cost of living pressures are influencing customer spending habits, leading to potential caution in future travel plans. Both companies have diversified successfully into package holidays, with EasyJet ramping up its focus in this area, thereby enhancing profitability beyond just flight sales. They have exhibited an ability to adjust prices effectively to meet rising costs, although ticket yield has shown slight declines that are compensated by higher passenger volumes.
