EasyJet is experiencing a difficult time in the past few years. It has been hit by travel restrictions, lockdowns and rising fuel prices, as well as the cost of living crunch.
The budget airline stated in October that it would continue to fly as many passengers as before the pandemic.
Investors will discover if it was on the money when it announces its full-year results Tuesday. This will then be a barometer for its performance in the coming year.
After last year’s loss of £1.1billion, shareholders will be looking at the full-year losses and whether they fall within the predicted £170million-£190million range.
Already, it has reported a £64million loss due to foreign currency losses as the pound fell and £75million costs related to summer’s disruptions and cancellations.
Hargreaves Lansdown analyst Sophie Lund-Yates stated that a worse-than-expected performance on this front will not be well-received by the market.
Inflation will impact spending power. All eyes will be on the forecasts for next year and whether demand is expected to decrease.
Lund-Yates stated that the group’s stronger brand, proposition and position put it in a better place than others. However, it is still something to be aware of.
Russ Mould from AJ Bell stated that shares are not yet above the level they were ten years ago due to lingering worries about Covid, high oil prices, fierce competition and the possibility of a recession dampening consumers’ desire to book holidays.
