Trading easyJet After H1 Performance

Despite improved first half results, easyJet was the worst performer on the FTSE 100 in May, with shares shedding almost 15% of their value. Keep reading to learn more about the airline’s half year results and to find out what analysts are forecasting for the stock over the year ahead.

• The Invest.MT5 account allows you to buy stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

easyJet H1 Performance

Here are some of the key highlights from easyJet’s results for the six months ending 31 March 2024.

• Revenue of £3.3 billion, an increase of 22% year on year.
• Headline loss before tax of £350 million, higher than expected but better than the £411 million loss the previous year.
• Holidays profit before tax of £31 million, an increase of 210%.
• Passenger numbers increased 11% to 36.7 million.

In the trading session following the announcement, easyJet’s share price slid 6% and continued to fall over the next three sessions. However, despite the headline loss, there were still positives to take away from the airline’s H1 performance.

It’s worth looking at this loss in a wider context. Airlines are seasonal businesses, experiencing higher demand in the summer than in the winter. In the case of easyJet, the airline tends to lose money during the first half of the year, before generally recording a stronger second half.

This year’s loss was narrower than last year and marked the third consecutive year in which H1 losses have fallen.

Passenger numbers and revenue both increased year on year. Furthermore, easyJet’s holidays business, which offers package deals, continued its impressive growth trajectory, with profit before tax soaring year on year.

Looking forward, the airline anticipates a positive second half of the year, with revenue per seat and capacity both expected to increase.

Nevertheless, with interest rate cuts yet to materialise and sluggish economic growth across Europe, summer demand may not be as strong as many had predicted at the turn of the year.

Moreover, last week, the Spanish government fined easyJet and three other airlines for “abusive practices” regarding their fees for cabin bags and seats. If these fines are upheld, it may hinder easyJet’s ability to generate ancillary revenue in the future.

easyJet Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an easyJet stock forecast in the past 3 months, there are currently 7 buy, 3 hold and 0 sell ratings on the stock. The highest price level for an easyJet stock forecast is 850.00p with the lowest price target at 525.00p.

The average price target for an easyJet stock forecast is currently 693.30p.

An Example Trading Idea for the easyJet Stock Price

An example trading idea for the easyJet share price could be as follows:  

• Buy the stock on a break above 500.00p to allow for volatility. 
• Target just below the average analyst price target of 693.00p. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 6 - 12 months  
• If you buy 100 easyJet shares:  
• If target is reached = £193.00 potential profit [(693.00p - 500.00p) * 100 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell UK stocks with a commission of 0.1%, and a minimum transaction fee of £1. So, the example trading idea above would result in a commission of £1 overall (other fees may apply, please check the Contract Specification section of our website for more details).

How to Buy easyJet Stock in 4 Steps  

With Admirals, you can buy more than 4,500 shares from some of the largest stock exchanges in the world.

• Open an account with Admirals to access the dashboard.   
• Open the web trading platform.   
• Search for easyJet and click the symbol to open a price chart. 
• Click Create New Order from the bottom of the screen to open the trading ticket. 

Click on the banner below to trade easyJet stock today ▼▼▼ 

Do You See the easyJet Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance easyJet share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
• Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
• With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
• The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
• Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
• Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
• Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.