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easyJet share price flies lower as group posts traffic statistics

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Shares in easyJet (LON:EZJ) have fallen deep into the red in today’s session, as the company updated investors on its September traffic, revealing a drop in its load factor. The news comes after the low-cost carrier recently signalled that it expects its annual profit to come in at the upper end of its guidance range, having benefitted from industry turbulence and cancellations at low-cost rival Ryanair.

As of 09:39 BST, easyJet’s share price had given up 1.40 percent to 1,200.50p. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.77 percent lower at 7,452.44 points.

easyJet posts traffic statistics

easyJet announced in a statement this morning that its passenger traffic had climbed 14.2 percent to 8.8 million last month. The group’s load factor, which represents the number of passengers as a proportion of the number of seats available, however, fell by 0.8 percentage points to 92.8 percent. On a 12-month rolling basis, the low-cost airline carried 88.5 million passengers year-on-year, while the load factor rose 0.3 percentage points to 92.9 percent.

The company noted that today’s update includes operations from Berlin’s Tegel airport. easyJet, however, did not provide an update on last month’s cancellations.

Today’s update comes after earlier this week, easyJet announced that it had partnered with Virgin for connections through London Gatwick Airport to destinations on the other side of the Atlantic, as part of its Worldwide programme.

Analysts on low-cost airline

Liberum reaffirmed easyJet as a ‘hold’ today, without specifying a price target on the shares, while Numis Securities, which also sees the group as a ‘hold,’ lowered its valuation on the shares from 1,836p to 1,321p. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 1,672.23p.

As of 10:04 BST, Thursday, 04 October, easyJet plc share price is 1,202.00p.

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