easyJet shares soar on summer outlook
easyJet shares jump despite a Q1 loss before tax of £126 million. IGTV financial analyst Angeline Ong looks at why investors are choosing to look past that, and focus on the budget carrier’s positive summer bookings.
(AI Video Summary)
easyJet shares rise following positive outlook for first half of 2024
Despite the turmoil in the Middle East, the value of easyJet shares is increasing after a positive forecast for the first half of the year. In the first three months, the company's losses before taxes were smaller than the previous year's losses, and the amount of money made per seat also went up by 3% due to more people flying with them. But the most exciting part is that the second half of the year is expected to be even better.
When the news came out, easyJet's shares on the IG trading platform went up by 5.2%. Another airline company called Wizz Air also saw a rise in their shares, going up by 4% initially, but then dropped to 3.5%. It's impressive to see easyJet doing so well, especially when there's so much uncertainty in the Middle East and the oil market isn't very stable.
A wise investment opportunity
Experts at JPMorgan, a big financial institution, recommend investing in low-cost airlines like easyJet and Wizz Air, instead of bigger airlines like Lufthansa and Air France-KLM. They made this suggestion in December, and they still stand by it. They think that low-cost airlines are better at dealing with tough economic times and can still make money.
Overall, easyJet is looking very positive and doing well financially, even though there are challenges around them. The recommendation from JP Morgan only adds to the view that low-cost airlines are a smart investment in today's market.
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