easyJet share price flies higher as airline sees passenger traffic rise

Budget carrier reports spike in cancellations amid industrial action

easyJet share price flies higher as airline sees passenger traffic rise

Shares in easyJet (LON:EZJ) have climbed into positive territory this morning, as the company reported a rise in passenger traffic for the previous month. The budget carrier, however, continues to be hit by a spike in cancellations amid industrial action in Italy and France.

As of 09:30 BST, easyJet’s share price had added 0.67 percent to 1,647.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.36 percent higher at 7,600.63 points. The group’s shares have added more than 21 percent to their value over the past year, as compared with about a three-percent gain in the Footsie.

easyJet posts June traffic

easyJet said in a statement this morning that it had carried 7.9 million passengers last month, marking a 2.3-percent rise as compared with June last year. The group’s load factor, which represents the number of passengers as a proportion of the number of seats available, meanwhile inched 0.5 percentage points higher to 95.4 percent during the reported period.

On a 12-month rolling basis, easyJet carried 83.3 million passengers, or 6.6 percent more than the prior-year period, while the load factor climbed 1.5 percentage points to 93.5 percent.

The blue-chip airline meanwhile reported that it cancelled 1,263 flights last month, equivalent to about 2.7ppts of planned capacity and up on the 213 experienced in June 2017. The group said that around 900 were due to French and Italian industrial action with a further 150 arising from ATC restrictions and adverse weather conditions.

Analysts on low-cost carrier

Liberum Capital reaffirmed easyJet as a ‘hold’ today, without specifying a price target on the shares, while HSBC continues to see the airline as a ‘buy,’ valuing the stock at 2,000p. According to MarketBeat, the budget carrier currently has a consensus ‘hold’ rating and an average price target of 1,785.88p.

As of 10:11 BST, Thursday, 05 July, easyJet plc share price is 1,644.00p.

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