EasyJet narrows first-half loss on Covid recovery

Call for shareholders to reject JetBlue bid

FE Team | Published: May 19, 2022 23:51:01

LONDON, May 19 (AFP/Reuters): British airline EasyJet revealed Thursday that first-half net losses improved after Covid travel curbs were lifted across Europe.
Losses after taxation narrowed to o431 million (509 million euros, $535 million) in the six months to the end of March compared with a loss of o549 million a year earlier, the budget carrier said in a statement.
Meanwhile, Spirit Airlines urged shareholders to reject a hostile bid by JetBlue Airlines on Thursday, saying it was "a cynical attempt to disrupt" its merger with Frontier.
JetBlue says its $30 a share offer is superior to the value of Frontier's cash-and-stock deal and regulatory concerns are not a reason to reject its bid. Shareholders are set to vote on Frontier's offer, which value Spirit at $20.18, on June 10.
Spirit questioned JetBlue's disclosure Monday that acquiring Spirit has been a "strategic" objective for many years, adding that antitrust issues would mean a deal could not be completed.
JetBlue, which in early April offered $33 per share, argues a deal will help it better compete with the "Big Four" US airlines that control nearly 80 per cent of the passenger market.
The sixth largest US passenger carrier, JetBlue would operate Spirit under the JetBlue brand, but promised a $200 million reverse break-up fee, or $1.80 per Spirit share, if the deal did not go through for antitrust reasons.
In a letter to Spirit shareholders on Monday, JetBlue offered $30 per share and said it was ready to "negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence."