easyJet share price flies high as airline benefits from industry turbulence

Low-cost carrier enjoys higher revenue

easyJet share price flies high as airline benefits from industry turbulence

Shares in easyJet (LON:EZJ) have jumped more than five percent higher in London this morning as the company posted a rise in first-quarter revenues, having benefitted from industry turbulence which hit rivals Monarch, Air Berlin and Alitalia. The low-cost carrier further noted that it expects its revenue per seat at constant currency to increase by mid to high single digits in the first half of its financial year.

As of 08:30 GMT, easyJet’s share price had added 6.68 percent to 1,668.00p, boosting the benchmark FTSE 100 index which currently stands 0.19 percent higher at 7,729.96 points. The group’s shares have added more than 53 percent to their value over the past year, as compared with about a seven-percent rise in the benchmark index.

easyJet posts Q1 results

easyJet announced in a statement this morning that its total revenue had increased by 14.4 percent to £1.14 billion in the first quarter of its financial year, reflecting a surge in passengers carried through the period, a 6.6-percent increase in revenue per seat at constant currency, a strong increase in ancillary revenue as well as a benefit from foreign exchange. The low-cost carrier saw passengers rise by eight percent to 18.8 million during the reported period.

The company also said that it had seen a positive trading environment, partly on account of the bankruptcies of Monarch, Air Berlin and Alitalia as well as the impact from Ryanair’s flight cancellations. easyJet, which snapped up part of Air Berlin’s assets, further reported successful start to operations at Berlin Tegel airport earlier this month.

Milestones ahead

“easyJet delivered a strong start to the financial year with a significant growth in revenue in part driven by an increase in passengers flown,” the airline’s new chief executive Johan Lundgren commented in the statement, adding that the company was expecting to reach a series of milestones in the current year, including the roll out of its full summer schedule at Berlin Tegel, and an increase in passenger numbers from 80 million to around 90 million. easyJet further plans to expand its worldwide programme to around half of its network and increase its fleet to over 300 aircraft by spring 2018. 

As of 08:58 GMT, Tuesday, 23 January, easyJet plc share price is 1,650.50p.

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