easyJet share price flies higher as July traffic rises

Low-cost carrier experiences ‘a number of cancellations’

easyJet share price flies higher as July traffic rises

Shares in easyJet (LON:EZJ) have climbed into positive territory this morning as the blue-chip airline posted a rise in passenger traffic for July. The airline, however, continued to experience cancellations.

As of 10:18 BST, easyJet’s share price had added 0.65 percent to 1,559.50p, outperforming the broader UK market, with the benchmark FTSE 100 having slipped into negative territory and currently standing 0.26 percent lower at 7,639.02 points. The group’s shares have added more than 23 percent to their value over the past year, as compared with about a 1.7-percent gain in the Footsie

easyJet posts July traffic

easyJet announced in a statement today that it carried 8.54 million passengers last month, marking a 4.5-percent rise on the 8.17 million in July last year. The group’s load factor, which stands for the number of passengers as a proportion of the number of seats available, meanwhile rose by 0.1 percentage points to 96.9 percent. On a 12-month rolling basis, easyJet carried 83.64 million passengers, or a 6.2-percent rise year-on-year, while its load factor climbed by 1.4 percentage points to 93.6 percent.

The London-listed low-cost carrier did not specify how many flights it cancelled last month, while noting that it had “again experienced a number of cancellations,” due to  industrial action, Air Traffic Control restrictions, a runway closure at Gatwick airport as well as adverse weather. The company noted that it had  industrial action, ATC restrictions, a runway closure at Gatwick airport as well as adverse weather. 

The update comes after FTSE 100 peer IAG (LON:IAG) said in its interims last week that the  French Air Traffic Control strikes had continued to challenge the group’s airlines.

Analysts on low-cost carrier

Liberum reaffirmed easyJet as a ‘hold’ today, without specifying a price target on the shares. According to MarketBeat, the blue-chip airline currently has a consensus ‘hold’ rating and an average price target of 1,799.52p.

As of 10:46 BST, Monday, 06 August, easyJet plc share price is 1,563.00p.

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