A good year for easyJet

easyJet has managed to charter a path through a turbulent year.

easyJet plane engine
Source: Bloomberg

On Tuesday 18 November easyJet is set to release its year-end figures. The company’s adjusted earnings per share is expected to improve at 115.1p up from 100p. The firm’s sales are also due to jump from £4.258 billion to £4.569 billion. Pre-tax profits for the year are called at £578.765 million up from £478 million.

It has been a strange year for easyJet as its largest direct competitor has had to re-invent themselves and in doing so replicated much of easyJet’s ethos. Having just celebrated its 19th birthday the strapline from 1995, ‘making flying as affordable as a pair of jeans’, is as true today as it was then. From its initial flight from London (Luton) to Glasgow, it is now expecting to have transported over 65 million passengers during the last 12 months.

The demise of a number of European-based airlines, along with several strikes by competitors’ staff, has all contributed to what is expected to be a very good year for the airline. CEO Carolyn McCall is also expected to discuss the benefits that the company has felt with the oil prices aggressively falling away. It, of course, has not all been good with the negative impact events on two Malaysian airlines have had on global travel.

Over the last twelve months the share price of easyJet has increased by 21.85% but at the current price of £15.45, it is well off its year highs of £18.52. As the share sits comfortably above the 50-,100- and 200-day moving averages and the price of oil, its largest cost, continues to be squeezed momentum should continue to push it higher.

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