easyJet share price takes off as airline expects H1 losses to shrink

on Jan 27, 2015
Updated: Oct 21, 2019

easyJet Plc (LON:EZJ) has soared to the top of the FTSE 100 leaderboard this morning after forecasting that its losses in the typically weaker winter months would shrink this year. As of 08:57 GMT, easyJet’s share price had surged 3.96 percent to 1,825.53p.

The FTSE 100 low-cost carrier announced in a statement today that it expected to post a first half loss before tax of between £10 million and £30 million, compared to the £53 million loss reported in the prior-year period. Reuters quoted analysts at Jefferies as saying that the airline’s first-half earnings guidance was better than expected.
easyJet today updated investors on its first-quarter performance, reporting that seats flown had grown by 2.9 percent year-on-year to 16.6 million in the three months ended December 31, 2014. The budget airline carried 4.1 percent more passengers during the reporting period, while the load factor, which measures the number of passengers as a proportion of the number of seats available, increased by one percentage point to 89.7 percent. easyJet saw its first-quarter revenues grow by £34 million to £931 million, while revenue per seat came in 0.8 percent higher at £56.16.

Commenting on the results, the company’s chief executive Carolyn McCall said that easyJet had made “a good start to the year,” and that it had managed to sell record numbers of seats to business travellers during the first quarter.
The carrier also forecast that its full-year fuel costs would shrink by between £90 million and £130 million from a year ago,with oil prices having slumped by more than 50 percent since last summer. The fuel cost saving would be “beneficial for customers” with ticket prices coming down, according to the statement.
The Financial Times notes that, as of January 26, the consensus forecast amongst 43 polled investment analysts covering easyJet has it that the company will outperform the market. The 23 analysts offering 12-month price targets for the low-cost carrier have a median target of 1,815p, with a high estimate of 2,200p and a low of 1,500p.
As of 09:39 GMT, Tuesday, 27 January, easyJet plc share price is 1,821.00p.

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