SHARE OF THE WEEK: EasyJet’s results barometer for year to come

EasyJet has had a turbulent time in recent years, wracked by lockdowns, travel restrictions, rising fuel prices and the tightness of the cost of living.

Still, the low-cost airline said in October that its flights would be as full during the fall break and Christmas as they were before the pandemic.

Investors will find out on Tuesday whether that was on the money with the annual results announcement. This, in turn, will be a barometer of his performance for the year ahead.

Shareholders will also look at full-year losses and whether they fall within a forecast range of £170m to £190m, following a loss of £1.1bn last year.

It has already marked a hit of £64 million due to currency losses, as the value of the pound fell, and £75 million in costs related to the summer’s disruption and cancellations.

“A worse-than-expected performance on this front will not be well received by the market,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.

With inflation hitting purchasing power, eyes will be on forecasts for the year ahead and whether demand is expected to weaken.

Lund-Yates said: “The group’s stronger brand and proposition keeps it in a better position than others, but it’s still something to consider.”

Russ Mould, at AJ Bell, said: “Stocks are still barely above where they were a decade ago, thanks to lingering concerns about Covid, skyrocketing oil prices, fierce competition, the war in Ukraine and the possibility of a recession hurting consumers. will dampen’ willingness to book vacations.’