easyJet share price: Group eyes some Alitalia assets

on Oct 17, 2017
Updated: Mar 11, 2020

easyJet (LON:EZJ) is interested in buying some assets of Italy’s Alitalia airline, the low-cost carrier has said. The news comes as the London-listed budget airline continues with talks to buy parts of insolvent carrier Air Berlin.

easyJet’s share price has jumped in London in today’s session, having added 1.42 percent to 1,306.33p, as of 13:32 BST, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent higher at 7,546.06 points. The group’s shares have added just under 30 percent to their value so far this year, as compared with about a 5.7-percent rise in the Footsie.

Interest in Alitalia

easyJet announced in a short statement yesterday that it had submitted an expression of interest in certain assets of a restructured Alitalia, noting, however, that given the nature of the process, the content of the expression of interest was subject to confidentiality.

“There is no certainty at this stage that any transaction will proceed and easyJet will provide a further update in due course if and when appropriate,” the British low-cost carrier pointed out. easyJet further noted that the move was consistent with its strategy for Italy.

Industry turbulence

Germany’s biggest airline Lufthansa has also put in an offer for parts of Alitalia, which went into administration earlier this year after staff rejected job and salary cuts as part of a €2-billion plan to rescue the Italian carrier. Recent weeks have also marked the collapse of Air Berlin and Monarch Airlines, underscoring the fierce competition in Europe’s airline industry.

easyJet recently updated investors on its recent performance, warning that the market continued to be ‘challenging’. The company, however, forecast that its full-year profits will come in at the upper end of its guidance.

As of 15:02 BST, Tuesday, 17 October, easyJet plc share price is 1,304.00p.