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easyJet (Baa2 S, BBB P) 1H (6m ending March) Earnings Call

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Equities are weaker, moves being attributed to 4Q guidance on airline revenue/seat (RPS) that is "load factor ahead with yield slightly up YoY" vs. trading update in mid-April that was a more optimistic "RPS remains well ahead YoY". A edit to morning note, we don't expect supply this year for refi with it reiterating today that the new €850m 31s has prefunded the €500m 25s. As we've mentioned many times 28s don't screen value (can rotate into equal rated staples for spread-pick up). No firm view on longer 7Y/31s but worth noting curve is flatter than IG network carriers & capex as it invests into fleet will adjust its BS in coming years. Some credit asides from earnings call below.


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Equities are weaker, moves being attributed to 4Q guidance on airline revenue/seat (RPS) that is "load factor ahead with yield slightly up YoY" vs. trading update in mid-April that was a more optimistic "RPS remains well ahead YoY". A edit to morning note, we don't expect supply this year for refi with it reiterating today that the new €850m 31s has prefunded the €500m 25s. As we've mentioned many times 28s don't screen value (can rotate into equal rated staples for spread-pick up). No firm view on longer 7Y/31s but worth noting curve is flatter than IG network carriers & capex as it invests into fleet will adjust its BS in coming years. Some credit asides from earnings call below.


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