EasyJet shares soar on 2023 profit beat, dividend, outlook
Easyjet’s shares jumped more than 3% after reporting 2023 earnings that beat analyst forecasts. IGTV's @AngelineOng looks at why investors are sharing the budget carrier’s outlook rather than fearing geopolitical instability.
(Video Transcript)
EasyJet flying high after great four-year results
Checking out the discount carriers, because easyJet shares are soaring some 2.5%. Let's have a look at a chart here to see whether it's moved slightly higher. This is easyJet on the IG platform, and it is up more now, up more than 3%.
Now, all this comes as easyJet delivered a good stack of four-year results. So the earnings for 2023 are coming in slightly ahead of analysts' expectations. But it's also the fact that the carriers said that it saw strength for summer 2024 and that people continue to travel.
Geopolitical instability remains a concern
This is despite the supply constraints and despite the concerns about geopolitics as well, given we've still got Gaza and, of course, Ukraine still ongoing. The British carrier did say, though, that geopolitical instability would weigh on the current quarter.
Just checking out the share price of its peers as well, showing you Wizz Air there, similar sort of trajectory, and also checking in on Ryanair Holdings. RyanAir climbing slightly there, as you can see, reaching highs not seen since around February 2022.
But all those carriers are getting a slight uplift from easyJet's numbers. This zooming in on easyJet's shares is up around 3%. However, much of this might also be to do with the fact that easyJet said it would propose a dividend of 4.5 pence a share at its annual general meeting later in December.
So, where is this salad addressing? Well, for the discount carriers like easyJet, like Wizz Air, like Ryan Air, if you see continued sounds that indicate a strong summer ahead and also bookings in the spring, then perhaps investors could be setting aside those geopolitical concerns and focusing more on continued demand for air travel. Thank you.
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