EasyJet Share Price Revisits 10-Month High Off the Back of Strong Summer Bookings

EasyJet share price has been experiencing volatility for the past few days despite retesting its highest level since May earlier this week. At the time of writing, the EZJ stock price was changing hands at 516.6p. EasyJet has jumped more than 85% from its lowest level in 2022 and 57.26% in the year to date.

The Future Looks Bright

EasyJet share price revisited its highest level 10 months earlier in the week before experiencing a minor pullback. The company’s strong summer bookings for the first quarter saw the company’s shares climb to 533p, its highest level since May 2022.

The aviation sector, including European airlines, has positive prospects despite high inflation and uncertainty around the global economy. Despite the post-pandemic concerns such as aircraft delivery delays and staff and equipment shortages, travel demand and profits remain sustainable.

The British airline announced on Tuesday that it expects to beat full-year profit market forecasts. Market Expectations for EasyJet’s FY2023 profit stand at about $322.3 billion. The company’s passenger capacity rose by 40% in the first quarter of 2023, with 99.8% of its Easter flights operating despite industrial action by the French air traffic controllers. Even so, the strike saw EasyJet cancel nearly 1,000 of its flights.

EasyJet reported a sharp drop in its net debt to $248 million, down from $1.37 billion in December. However, the company stated that a stronger US dollar and high fuel prices have pushed operating costs higher. EZJ’s headline loss for the first half of its fiscal year is expected to be between $504 million and $528 million.

EasyJet Share Price Outlook

EasyJet share price has been under immense pressure for the past few weeks, trading sideways between the range of 470p and 520p. The stock has managed to move above the 50-day and 200-day exponential moving averages (EMAs) as highlighted on the daily chart.

A flip of the hurdle at 533p will initiate a bullish breakout for EasyJet share price, with the next target at 600p. However, a rejection of the current level might push the EZJ stock price below the 500p level, making the next crucial support at 486p within bear’s reach.

EZJ Price Chart

Leave a Reply

Your email address will not be published.