SHARE OF THE WEEK: Investors hope for upbeat forecast from easyJet
SHARE OF THE WEEK: An upbeat forecast from easyJet will help to boost optimism for the wider travel sector
EasyJet has been managing to maintain a steady altitude so far this year as families shrug off the cost-of-living crisis to go on holiday.
Investors will be hoping the budget airline has continued the trend when it reports its half-year results on Thursday following the Easter getaway and the start of the summer holiday planning period.
In an update last month, easyJet flagged a sharp rise in demand as many families splashed out on trips despite rising fares, with boss Johan Lundgren citing the ‘usual suspects’ of Majorca, Malaga, Alicante and Amsterdam as popular destinations.
The firm also predicted its full-year profits would top expectations of £260m, so the City will be looking to see if the company can surpass forecasts once again as the weather begins to warm.
Most of the key finances for the half-year were already flagged in the April update, with easyJet expecting to deliver a £415m loss for the period, narrowed from a £545million loss at the same time last year.
Many will keep a close eye on the airline’s cost projections for the rest of 2023, with the sector having been hit by the soaring cost of jet fuel after global energy prices spiked following the outbreak of war in Ukraine.
Given prices have cooled from the highs seen last June, investors with easyJet shares will be looking for any signs that costs are on the decline. An upbeat forecast from easyJet next week will also help to boost optimism for the wider travel sector.