easyJet share price: Group to shut Hamburg base next year

Move part of airline’s strategy to focus on core airports

easyJet share price: Group to shut Hamburg base next year

easyJet (LON:EZJ) will close its Hamburg base next summer, Reuters has reported. The news comes as the company updated investors on its May traffic this week, reporting a 9.5-percent rise in passenger numbers.

easyJet’s share price has jumped in London this morning, having added 0.90 percent to 1,345.00p as of 08:23 BST, outperforming the broader UK market, with the benchmark FTSE 100 index standing 0.04 percent higher at 7,481.37 points. The group’s shares have lost more than 11 percent of their value over the past year, but are up by more than a third in the year-to-date.

Reuters reported this week that easyJet was set to close its Hamburg base next summer, as part of a strategy to focus on its core European airports.

“After a thorough review of its Hamburg operations (easyJet) proposes to cease basing crew and aircraft at Hamburg from summer 2018,” the newswire quoted the airline as saying in a statement. The UK low-cost carrier, however, noted that it would keep a significant presence in Hamburg and that there would be no changes to the currently planned schedule.

In a separate development, the FTSE 100 group updated investors on its May traffic, reporting that it had carried 7.5 million passengers last month, marking a 9.5-percent rise on the prior-year period. The airline’s load factor, which measures the number of passengers as a proportion of the number of seats available, meanwhile remained unchanged at 91.5 percent.

The 23 analysts offering 12-month price targets for easyJet for the Financial Times have a median target of 1,150.00p on the shares, with a high estimate of 1,550.00p and a low estimate of 700.00p. As of June 2, the consensus forecast amongst 27 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 08:42 BST, Thursday, 08 June, easyJet plc share price is 1,346.00p.

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