SHARE OF THE WEEK: An upbeat forecast from easyJet will boost optimism for the wider travel sector
EasyJet has managed to maintain a steady high so far this year as families shrug off the cost of living crisis to take a holiday.
Investors will hope the budget airline has continued the trend when it reports its half-year results on Thursday after Easter breakfast and the start of the summer holiday planning period.
In an update last month, easyJet signaled a surge in demand as many families traveled despite rising fares, with boss Johan Lundgren citing Majorca, Malaga, Alicante and Amsterdam as popular destinations as the ‘usual suspects’.
The company also forecast full-year profits to beat expectations of £260m, so the city will look to see if the company can beat forecasts again as the weather starts to warm up.
Most of the key finances for the half year were already highlighted in the April update, with easyJet expecting to post a loss of £415m for the period, compared to a loss of £545m at the same time last year.
Many will be keeping a close eye on the airline’s cost projections for the remainder of 2023, as the industry was hit by the skyrocketing cost of jet fuel after global energy prices peaked following the outbreak of war in Ukraine.
As prices have cooled from last June’s highs, investors will be watching for signs that costs are falling. An upbeat forecast from easyJet next week will also help fuel optimism for the wider travel sector.