Originally Posted by
Albert Hall
Has anyone else read the easyJet Q1 results? On the face of it, it all sounds bright and cheery - marginal improvement in losses for Oct/Nov/Dec and positive noise about forward bookings. You then read on down the announcement - cash and money market deposits has dropped hugely. They were at £3.0bn last year and have repaid an E500mn bond - so about £426 million of debt repayment which would mean that cash should be about £2.5bn this year. It's actually fallen to £1.9bn, which is a further big shift beyond the debt repayment. There's no explanation for it - if forward bookings are indeed ahead of last year then cash should be up?
I do have doubts about how honest the travel industry as a whole is being about current/forward sales.