EasyJet Challenges the Market with Optimistic Prospects by Investing.com

By Geoffrey Smith

Investing.com – C & # 39; Easyjet about to turn a corner?

Europe's second-largest discount airline (LON 🙂 had a pitiful year, losing more than 42% due to rising fuel prices, overcapacity, drone disturbances at the airport Gatwick in London and lower than expected growth on the continent.

All of this was eclipsed, of course, by the uncertainty created by the Brexit, which managed to get up again on Thursday as the Conservative Party accelerated its preparations for the abandonment of work before the planned release date. of October 31st.

But this morning, Easyjet shares rose 2.7%, after the airline maintained its target for the year despite the release of its target for the six months ended March, the first half of its exercise.

It is a rare bright spot of a morning still eclipsed by the fears of the US-China trade war and the growing risk of a real shooting war with Iran. The benchmark was down 1.8 points, or 0.5%, to 381.60. The 0.4% drop while the German dropped by 0.6% and the Italian get a little better, fell by 0.3%.

In part, it's because the results are no worse than those announced six weeks ago by the airline. And partly because the management still counts on a good summer season (which seems to have started with a decent performance at Easter). And partly because of CEO Johan Lundgren who said the company would expect to add new seats next year.

EasyJet has been one of the main drivers of a strong capacity increase over the past year, with airlines betting on a sustained increase in European demand that has not materialized due to the economic slowdown.

It plans to add nearly twice as many seats as its competitors over the next six months. It means more than usual that consumers must overcome their Brexit-related anxiety and engage for a summer break.

Elsewhere Friday, EasyJet competitor Norwegian ASA Air Shuttle (OL 🙂 climbed more than 13% on Thursday, following an article in Spanish newspaper Expansion, saying the takeover of the airline is coming back to life. This is despite the CEO of IAG (LON :), Willie Walsh, who said last week that he was not trying to renew his interest after two unsuccessful offers for the company at a much higher price last year. The Oslo Stock Exchange is closed for holidays today.