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easyJet beats expectations

Despite concerns over pricing, easyJet's revenue per seat performance beat market expectations in the third quarter.
July 22, 2015

City analysts are calling the latest trading update from budget airline easyJet (EZJ) 'reassuring'. Revenue per seat was better than expected (down 2.8 per cent at constant currency) but offset by a worse than expected rise in costs excluding fuel (up 2.8 per cent constant currency). The latter was the result of air traffic control strikes and a major fire at the Rome Fiumicino airport.

IC TIP: Buy at 1731p

Overall, management says it still expects to meet full-year consensus forecasts this year. According to Bloomberg, the market expects pre-tax profits of around £637m for the year ended September.