easyJet share price steady as airline updates on December traffic

Low-cost carrier reveals rise in both passengers and cancellations

easyJet share price steady as airline updates on December traffic

Shares in easyJet (LON:EZJ) have climbed into positive territory in today’s session, marginally outperforming the broader UK market, as the company updated investors on its December traffic.  The low-cost carrier carried more passengers last month while also revealing a rise in cancellations.

As of 09:38 GMT, easyJet’s share price had added 0.33 percent to 1,515.00p, marginally outperforming the benchmark FTSE 100 index which currently stands 0.21 percent higher at 7,712.22 points. The group’s shares have added more than 44 percent to their value over the past year, as compared with about a seven-percent rise in the Footsie.

easyJet updates on December traffic

easyJet announced in a statement this morning that it had carried 5.9 passengers in the last month of 2017, marking a 5.5-percent rise year-on-year. The group’s load factor, which measures the number of passengers as a proportion of the number of seats available, meanwhile climbed 1.5 percentage points to 91.4 percent. On a 12-month rolling basis, the airline’s passengers rose 9.6 percent to 81.6 million, while the load factor came in 1.6 percentage points higher at 93 percent.

easyJet also reported 580 cancellations in December, as compared with 330 in the last month of 2016, attributing the number to adverse weather conditions causing about 400 cancellations with runway closures making up the majority of the remaining cancellations and some impact from industrial action.

The update comes after Avation recently completed the delivery of an Airbus A320-200 to the low-cost carrier, as part of easyJet’s acquisition of some assets of insolvent Air Berlin.

Analysts on easyJet

Analysts at Liberum Capital remain bearish on easyJet, having reiterated their ‘sell’ stance on the shares today, with a price target of 1,100p. Beaufort Securities meanwhile downgraded the low-cost carrier to a ‘hold,’ without specifying a valuation on the shares. According to MarketBeat, easyJet currently has a consensus ‘hold’ rating and an average price target of 1,372.84p.

The FTSE 100 carrier is scheduled to update investors on its first-quarter performance on January 23.

As of 09:51 GMT, Friday, 05 January, easyJet plc share price is 1,519.00p.

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