CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Shares in easyJet (EZJ) and SAS wobble on Omicron fears

By Rob Griffin

11:07, 30 November 2021

EasyJet branded planes
Airlines concerned about Omicron – Photo: Shutterstock

Shares in British budget airline easyJet and SAS of Scandinavia fell early on Tuesday morning after both companies warned of uncertainties related to the Covid-19 pandemic.

While the two airlines are broadly optimistic after an increase in bookings, both voiced concerns about the potential impact of the Omicron variant.

This was enough to help send the stock prices of easyJet and SAS down by around 3% in early trading to 488p and SEK1.26, respectively.

Increased losses

EasyJet revealed a headline pre-tax loss of £1.1bn ($1.5bn) for the year ending 30 September 2021 – higher than the last year’s £835m loss.

The Luton-based airline said it was too soon to say what impact Omicron would have on European travel but insisted it had prepared itself for such periods of uncertainty.

CEO Johan Lundgren said the company had enjoyed an encouraging start to the year, with capacity in the fourth quarter of 2022 expected to be close to full-year 2019 levels.

“We remain mindful that many uncertainties remain as we navigate the winter, but we see a unique opportunity for easyJet to win customers and take market share from rivals in this period,” he said.

What is your sentiment on SAS?

Vote to see Traders sentiment!

SAS optimistic

SAS reported narrowing losses for the fourth quarter of SEK945m ($104.3m) – down from SEK3.25bn in the same period last year – with revenue rising to SEK5.7bn from SEK3.03bn.


38,823.15 Price
+0.000% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30

In a statement, Anko van der Werff, president and CEO of SAS, said it was encouraging to note the continued positive trend from the summer, with demand and ticket sales rising.

“However, 2021 was one of the most challenging years in the history of the aviation industry and the future remains hard to predict, primarily due to challenges connected to the ongoing pandemic,” he added.

Reality of industry

EasyJet’s £1.1bn pre-tax loss makes for uncomfortable reading, but that’s the “stark reality” of the airline industry at present, according to Russ Mould, investment director at AJ Bell.

“Capacity remains restrained as travel restrictions have prevented airline operators from truly being able to make the most of the post-lockdown pent-up demand from consumers to get outside and see the world again,” he said.

However, Gerald Khoo, an analyst at Liberum, believes easyJet’s results were in line for what should hopefully be the worst period of the pandemic.

“It’s too soon to tell what impact Omicron will have on travel restrictions, but easyJet has the balance sheet strength to deal with such a challenge,” he said. “Summer 2022 bookings are ahead of 2019 levels, but modest in absolute terms.”


Read more: Analysis: European airlines are still not ready for take-off

Markets in this article

4.71 USD
0.12 +2.690%
0.035 USD
-0.001 -3.230%
0.035 USD
-0.001 -3.230%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading