Like a gazelle stotting in front of a lion, easyJet wants to prove it’s not to be taken down easily. Its riposte to would-be buyer Wizz Air? Show that it has the balance sheet strength to withstand any prolonging of the crisis in consumer travel and also take market share.
Unfortunately, achieving said liquidity via a £1.2 billion rights issue hardly screams you’re fit for a fight. JP Morgan has cut its target price for the stock to just 595p. At least short-term liquidity concerns should be allayed, should travel restrictions remain for longer than expected.
Net debt had risen to just over £2 billion at the end of June, an 81 per cent jump on the end of 2020. Once the dark clouds have