easyJet share price takes off despite interim loss

Shares in easyJet (LON:EZJ) have climbed higher in London this morning even as the blue-chip carrier posted a loss for the first half of its financial year. The low-cost airline, however, reaffirmed its expectations for the financial year.

As of 08:42 BST, easyJet’s share price had added 2.19 percent to 994.35p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.27 percent lower at 7,333.53 points.

easyJet posts half-year results

easyJet announced in a statement this morning that its headline loss before tax had widened to £275 million in the first half of its financial year, compared with an £18-million loss in the prior-year period. Passenger numbers, however, increased  by 4.9 million, or 13.3 percent, to 41.6 million, while total revenue came in 7.3 percent higher at £2.34 billion.

“easyJet has performed in line with expectations in the first half,” easyJet’s chief executive Johan Lundgren commented in the statement.  “I am pleased that despite tougher trading conditions, we flew more than 41 million customers.”

easyJet’s results come after FTSE 100 peer and British Airways owner International Consolidated Airlines Group (LON:IAG) recently revealed a drop in first-quarter profits, pointing to fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter which impacted European airlines.

Group reaffirms FY guidance

The company said that its headline profit  before tax expectations for the financial year 2019 remained unchanged and in line with expectations. Lundgren further noted that cost control remained a major priority for easyJet, adding that the company was on track to deliver more than £100 million in cost savings during 2019.

According to MarketBeat, the low-cost airline currently has a consensus ‘hold’ rating while the average target on the easyJet share price stands at 1,279.35p.