• 06 October, 2017 News

    EasyJet shares take a knock despite record summer passengers
    An oversupply of airline seats has put a significant pressure on low-cost carrier EasyJet EasyJet shares take a knock despite record summer passengers

    An oversupply of airline seats has put a significant pressure on low-cost carrier easyJet regardless of the airline saying profits would be at the top end of its range thanks to a record summer passenger numbers.

    Overall, investors sent the shares tumbling roughly 1.5pc in early trading this morning to £12.65, making it the biggest faller in the FTSE 100, after the revenue per quarter fell 3.7pc during the final quarter of its trading year. Additionally, the number had dropped 1.4pc in the last six months.

    This tumble was unveiled whilst the whole sector comes to terms with many available seats on flights. Some airlines have cooled the level of seat growth they had planned since the Brexit referendum last June, whilst the low oil price has supported airlines to keep a higher number of seats in the air than they might otherwise be able to.

    A price war amongst airlines has also seen carriers fighting to cut fares. In particular, EasyJet said flights to back destinations from the United Kingdom has watched prices fall considerably.

    Although, the low fuel price also supported easyJet’s costs. Therefore, its costs per seat including fuel will tumble 4.4pc for the year to September 30th.

    The company has said that it predicts its pre-tax profits for the year to be between £405-£410m, which is ultimately the upper end of its previously guided range. Overall, this was supported by record passenger numbers of 24.1m in the past three months, which meant it had hit a record load factor- which is a measure of how full its planes are on average- of 95.6pc.

    The airline is set to unveil its full-year numbers on November 21st.

    Contact one of our brokers today at, www.forex.ltd.uk.


    Abi Moses

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