EasyJet share price rises on August traffic figures

on Sep 4, 2014
Updated: Oct 17, 2019

iNVEZZ.com, Thursday, September 4: Shares in easyJet (LON:EZJ) rose almost one percent at the opening bell this morning after the company released its latest passenger statistics.

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The low-cost airline said in a statement today that it had seen its annual traffic pick up slightly in August, with the number of passengers, measured by the number of earned seats flown, up 8.4 percent to 6.61 million from 6.1 million last year . This compared to July’s annual passenger growth of 7.7 percent.
EasyJet’s monthly load factor, which measures for the number of passengers as a proportion of the number of seats available for passengers, reached 94.2 percent, up 1.4 percentage points from 92.8 percent in August 2013.

Meanwhile, the rolling 12-month passenger total was 64.34 million in August, up 6.4 percent year-on-year. The rolling 12-month load factor improved 1.1 percentage points to 90.3 percent.
The statistics came amid a tumultuous time for the airline industry. Political unrest and government sanctions have rendered some areas all but unvisitable and investors were awaiting today’s release to see if the downturn was reflected in the numbers.

Last month, easyJet warned shareholders that its pre-tax profits could be lower than expected, at between £545 million and £570 million for the year to September 30, 2014 ((https://invezz.com/news/equities/12219-easyjet-share-price-fails-to-take-off-after-profit-guidance EasyJet share price fails to take off after profit guidance).
**Rival Ryanair also sees traffic improvement**

Ryanair’s (LON:RYA) traffic also increased in August. EasyJet’s competitor yesterday said that its passengers increased by 400,000 to 9.4 million in August, from nine million a year earlier. Meanwhile, the company’s load factor improved from 89 percent to 93 percent over the year.
The company, whose share price jumped almost two percent yesterday, attributed the rise to the launch of new family and business products.

**EasyJet share price opens higher**
EasyJet’s latest traffic figures have boosted the company’s share price, with the stock opening almost one percent higher this morning. By 10:28 BST, it had gained 1.54 percent to stand at 1,385.00p.
Of the 22 analysts projecting 12 month price targets for the FTSE 100-listed airline for the Financial Times, the median target is 1,706.00p, with a high estimate of 2,100.00p and a low estimate of 1,150.00p.
According to the FT, as of August 29, 2014, the consensus forecast amongst 51 polled investment analysts covering easyJet advises that the company will outperform the market.
**As of 08:28 BST, buy easyJet shares at 1,385.00p.**
**As of 08:28 BST, sell easyJet shares at 1,383.00p.**
**As of 08:28 BST, buy Ryanair shares at 7.46 euro.**
**As of 08:28 BST, sell Ryanair shares at 7.45 euro.**


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