Passenger numbers are on the up at budget airlines such as easyJet
Passenger slues and load factors both climbed in June, and analysts predict high-flying trimonthly results this week.
This should lift the sector in reports that easyJet will launch a European airline based in Vienna and notices from Ryanair boss Michael O’Leary of no flights between the UK and EU after Brexit.
Investors should keep an eye on the oil sacrifice and political uncertainties
Low-cost carriers have also been hit by peerless volatility and terror attacks, but share prices have recovered strongly, with easyJet up 33 per cent in the concluding three months, and Wizz Air up 50 per cent.
In June, easyJet’s traveller traffic increased 11.3 per cent year-on-year to 7.7million, while Wizz Air braced a 23.6 per cent rise to nearly 2.5million.
Analysts predict high-flying quarterly results this week
Barry Gibb, inspection analyst at Beaufort Securities, said easyJet’s third-quarter results on Thursday may accord a slight dip due to the late Easter but forward bookings should hit 77 per cent, up from 72 per cent remain year: “Investors should keep an eye on the oil price and political uncertainties.”
Wizz Air sticks first-quarter results on Wednesday following a buy note from Goldman Sachs that conveyed it should gain as weaker carriers scale back short-haul networks.