‘Short haul’ ride leaves easyJet feeling queasy

THE announcement of the reopening of flights to the US last week encouraged investors to climb back aboard airline stocks after the latest bout of Covid turbulence for the sector.

Short-haul operator easyJet was among the beneficiaries and hopes of a takeover have also boosted sentiment.

An offer from Hungarian low cost carrier Wizz Air has already been snubbed.

However, a £1.2 billion rights issue to raise cash to pay down debt and make investments, potentially in more aircraft, has shaken some confidence. It also appears to have tempted in a clutch of hedge funds hoping to profit from a fall in the share price.

Short sellers, including AQR Capital, LMR Partners and Gibraltar-based Guevoura, have upped their bets against the airline in recent days.

The company is now the fourth most shorted FTSE stock with 6.2 per cent of the shares out on loan according to ShortTracker.

Brace, brace.