SHARE OF THE WEEK: EasyJet’s full-year results will be a barometer of its performance for the coming year
easyJet It has had a turbulent time in recent years, hit by lockdowns, travel restrictions, rising fuel prices and the cost of living crisis.
Even so, the budget airline said in October that its flights would be as full as before the pandemic during the fall semester and Christmas.
On Tuesday, investors will find out if that was in the money when he reveals full-year results. This, in turn, will be a barometer of your performance for the coming year.
Shareholders will also look at losses for the full year and whether they fall within an expected range of £170m to £190m, after a loss of £1.1bn last year.
It has already flagged a £64m hit from currency losses as the value of the pound plummeted, and £75m of costs associated with the summer outage and cancellations.
“A worse than expected result on this front will not be welcomed by the market,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
As inflation hits purchasing power, eyes will be on forecasts for next year and whether he expects demand to weaken.
Lund-Yates said: “The group’s stronger branding and proposition keeps it in a better position than others, but it’s still something to watch out for.”
AJ Bell’s Russ Mold said: “Stocks are still barely up from where they were ten years ago, thanks to lingering concerns about Covid, high oil prices, fierce competition, the war in Ukraine and the possibility of that a recession discourages consumers. willingness to book holidays.’