RE: Ryanair is last choice23 Jul 2024 15:23
Just an FYI for those who haven't seen this -
easyJet's Pricing, Demand in Focus as Earnings Expected to Rise — Earnings Preview
Jul 23, 202410:14 GMT+1
EZJ
−0.61%
By Pierre Bertrand
easyJet is scheduled to report its third-quarter results Wednesday. Here is what you need to know.
REVENUE FORECAST: The London-listed low-cost airline is expected to report 2.65 billion pounds ($3.43 billion) in quarterly revenue, according to a Visible Alpha consensus. The airline reported GBP2.36 billion a year prior.
PRETAX INCOME FORECAST: Analysts estimate the company will make GBP219.3 million in pretax profit, according to Visible Alpha. The result would be a slight on-year increase after easyJet posted GBP203 million in pretax profit a year ago.
easyJet shares are down 9.8% over the past 12 months and trade 16% lower from where they were at the start of the year.
WHAT TO WATCH:
Summer pricing: In May, easyJet lauded how it saw summer demand leading to fiscal-year growth in earnings. It said at the time that it had booked 1 million more customers than a year prior as it expected its second-half number of seats on sale to grow 8% on year. It also said it expected 3Q revenue per seat to be slightly up on year. However, Ryanair set the tone for low-cost carriers earlier this week in reporting weak summer pricing. The peer warned that pricing trends were deteriorating after it lowered its pricing outlook for summer. That downgrade weighed on easyJet shares Monday. The company's view on pricing will likely, therefore, be closely watched. "Undoubtedly the majority of the focus at the 3Q will be on the near-term demand picture, and for the shares to regain some upwards momentum, estimates need to stabilize with no further deterioration in the pricing message from the company," JPMorgan analysts Harry J Gowers and Shikha Khurana said.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
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