easyJet share price steady as passenger traffic rises

Budget carrier suffers spike in cancellations

easyJet share price steady as passenger traffic rises

Shares in easyJet (LON:EZJ) have advanced in London this morning, holding steady, as the low-cost carrier reported that it had carried more passengers last month. The company, however, saw a spike in cancellations due to industrial action and bad weather.

As of 08:42 BST, easyJet’s share price had added 0.69 percent to 1,746.50p. The shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.26 percent higher at 7,707.09 points.

easyJet traffic statistics

easyJet reported in a statement this morning that it had carried 7.79 million passengers last month, marking a 3.7-percent increase on the prior-year period. The airline’s load factor, which represents the number of passengers as a proportion of the number of seats available, meanwhile climbed by 1.8 percentage points to 93.3 percent.

On a 12-months rolling basis, easyJet’s passenger traffic rose 8.4 percent to 83 million, compared to May last year, while the company’s load factor came in 1.5 percentage points higher at 93.5 percent. The company noted in the statement that the May passenger statistics do not include operations at Berlin’s Tegel airport. The London-listed group snapped up part of collapsed carrier Air Berlin’s German operations earlier this year, taking advantage of the ongoing industry turbulence which has also claimed Monarch and Alitalia.

Cancellations spike

easyJet, however, also reported that it had suffered 974 cancellations last month, equivalent to 2.5 percent of the carrier’s planned capacity, and up on the 117 cancelled flights experienced in May last year. The company explained that about 600 of last month’s cancellations were due to French and Italian industrial action with a further 300 arising from adverse weather conditions and Air Traffic Control restrictions.

Liberum lifted its stance and price target on the blue-chip carrier this week, arguing that “supportive short-term trading outweighs cost concerns, for now”.

As of 09:07 BST, Wednesday, 06 June, easyJet plc share price is 1,745.00p.

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