Long-Term Value Amid Short-Term Turbulence
The post Long-Term Value Amid Short-Term Turbulence appeared on BitcoinEthereumNews.com. An easyJet plane takes off from Tegel Airport. (Photo by Bernd von Jutrczenka/picture alliance via Getty Images). dpa/picture alliance via Getty Images The easyJet share price (LON:EZJ) has faced further turbulence after a solid Q3 update was overshadowed by a drop in the airline’s near-term outlook. Consequently, the stock has dipped back below 500p – but there’s reason to believe the shares can fly again. Flying Quarter Had management reiterated its FY25 guidance – which was absent – I would have no qualms about the easyJet share price flying close to its YTD high by now. This is because the budget operator had quite a stellar quarter. Passenger revenue was up 9.7% to £1.76 billion, while ancillary revenue increased 5.6% to £732 million, and Holidays revenue r0se 27.4% to £428 million. As such, group revenue grew 10.9% to £2.92 billion. Nonetheless, the timing of Easter in Q3 this year saw ticket yields (passenger RASK) tick up 1.8% to 4.64p. Otherwise, yields would’ve come in slightly down, as has been the case for H1. But it was ultimately the fall in fuel prices that boosted easyJet’s headline EBIT margin by 115bps to 10.04%. The 7.3% decline in fuel unit cost (fuel CASK) to 1.65p was precisely what I forecasted. This resulted in a mere 0.3% increase in fuel costs to £627 million. Higher costs was still inevitable, however, as bigger capacity, heavier load factors, and more passengers came into play. Not to mention, unit costs excluding fuel (CASK ex. fuel) ended up rising 2.3% to 4.39p from higher navigation fees, wages, and airport costs, offsetting some of the lower fuel cost benefits. Be that as it may, headline pre-tax profit (PBT) realised a healthy uptick of 21.1% to £286 million – in line with what I had predicted, too. No Reason…
The post Long-Term Value Amid Short-Term Turbulence appeared on BitcoinEthereumNews.com.
An easyJet plane takes off from Tegel Airport. (Photo by Bernd von Jutrczenka/picture alliance via Getty Images). dpa/picture alliance via Getty Images The easyJet share price (LON:EZJ) has faced further turbulence after a solid Q3 update was overshadowed by a drop in the airline’s near-term outlook. Consequently, the stock has dipped back below 500p – but there’s reason to believe the shares can fly again. Flying Quarter Had management reiterated its FY25 guidance – which was absent – I would have no qualms about the easyJet share price flying close to its YTD high by now. This is because the budget operator had quite a stellar quarter. Passenger revenue was up 9.7% to £1.76 billion, while ancillary revenue increased 5.6% to £732 million, and Holidays revenue r0se 27.4% to £428 million. As such, group revenue grew 10.9% to £2.92 billion. Nonetheless, the timing of Easter in Q3 this year saw ticket yields (passenger RASK) tick up 1.8% to 4.64p. Otherwise, yields would’ve come in slightly down, as has been the case for H1. But it was ultimately the fall in fuel prices that boosted easyJet’s headline EBIT margin by 115bps to 10.04%. The 7.3% decline in fuel unit cost (fuel CASK) to 1.65p was precisely what I forecasted. This resulted in a mere 0.3% increase in fuel costs to £627 million. Higher costs was still inevitable, however, as bigger capacity, heavier load factors, and more passengers came into play. Not to mention, unit costs excluding fuel (CASK ex. fuel) ended up rising 2.3% to 4.39p from higher navigation fees, wages, and airport costs, offsetting some of the lower fuel cost benefits. Be that as it may, headline pre-tax profit (PBT) realised a healthy uptick of 21.1% to £286 million – in line with what I had predicted, too. No Reason…
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