easyJet Flies Higher After Encouraging Results

A double whammy of good news sent easyJet flying up the FTSE leader board.  Strong Q3 results combined with news of poaching Peter Bellew as Chief operating officer from rival Ryanair sent shares 2% higher when the broader market was in decline.

Whilst here in the UK we are bemoaning the cooler summer, easyJet has been cashing in. The low-cost carrier reported an increase in revenue per seat and sales for the three months to June, rising 11% from a year earlier.

easyJet said that it was on course to meet its full year earnings estimate, predicting £400 - £440 million.

A sharp increase in late bookings, which are usually more expensive has provided some relief for easyJet in what has become an increasingly challenging environment. Investors had been fearing that easyJet would have to warn on profits, particularly after May’s half year results made for dismal reading.

Points against

European carriers have seen margins squeezed owing to a glut in capacity across the region and as Brexit uncertainty has put holiday makers off booking another foreign excursion. With a lack of major sporting events and overall demand trending lower some carriers are struggling. there is no getting away from Brexit and the potential disruption that a disorderly exit from the European Union could have on easyJet. This has weighed on the price of the share which has lost 60% in 12 months.

Points for

However, today’s results and appointment could offer support to the price of easyJet shares. As will the fact that rival Ryanair will be cutting flights next summer because the grounding of Boeings 737 Max jets will delay the delivery of Ryanair’s new Max 200 aircrafts. easyJet, as an Airbus only fleet will be unaffected. Below the Brexit headwinds is hasn’t all been bad news, easyJet is still managing to grow its underlying business, whilst others fail. easyJet could emerge stronger after a difficult period for the aviation industry.

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD advances above 1.30 after upbeat UK wage figures

GBP/USD is trading above 1.30 after UK wage figures beat expectations with 3.2% annually. The unemployment rate remained at 3.8% in November. 

GBP/USD News

EUR/USD trades around 1.11 amid upbeat German figures, trade headlines

EUR/USD is trading around 1.11 after the German ZEW Economic Sentiment beat with 26.7 points. Presidents Trump and Macron agreed not to slap tariffs on each others' countries.

EUR/USD News

Market delays the trip to the moon

The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019. 

Read more

Gold retreats from 2-week tops, drifts into negative territory

Gold failed to capitalize on its early uptick to near two-week tops and dropped to fresh session lows, around the $1560 region in the last hour.

Gold News

USD/JPY: Weaker near 110.00 amid China virus fears, BOJ's status-quo

The Japanese yen retains the bid tone following the Bank of Japan's (BOJ) status-quo, keeping USD/JPY under pressure near the 110 level amid risk-off market profile. S&P 500 futures drop 0.40% while the US Treasury yields are down over 1.50%, as the sentiment is hit by the coronavirus outbreak. 

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures