FTSE 250-listed airline easyJet PLC (GB:EZJ) achieved its summer triumph by delivering record performance in its FY23 trading update. The company experienced an 8% year-on-year growth in customer numbers, with load factors rising to 93%. Riding high on this success, the company decided to bring back dividends for its shareholders in early 2024. This makes it the first airline among the major European players to reinstate dividends after the pandemic.
easyJet is a leading airline in Europe, recognized for its low-cost services. The company maintains a fleet of over 330 aircraft, with operations across 34 countries.
2023 Outlook
For the full year 2023, the airline anticipates a pre-tax profit ranging between £440 million and £460 million. easyJet’s holiday packages business continues to demonstrate strong performance and is expected to generate an impressive £120 million in profits. The profitability of this segment opens the door for increased earnings potential in the coming year. This positive outlook has led the company to upgrade its medium-term target for pre-tax profits to be above £1 billion.
As part of its major expansion, the company also proposed a new aircraft order. For this, the company has entered into a deal with Airbus to deliver 158 aircraft, with the option for an additional 100, resulting in a total of 315 planes on order by 2034.
easyJet Share Price Forecast
Despite the positive news, investors seem less receptive, and the shares have declined by nearly 4% today as of the current writing. Year-to-date, the shares have gained 27% in trading. Investors and analysts are eagerly anticipating the company’s final results for FY23 in November, with the hope of more clarity on future prospects.
As per the consensus among analysts on TipRanks, EZJ stock has been assigned a Hold rating. The company’s ratings consist of three Buy, five Hold, and one Sell recommendations.
The easyJet share price target is575.71p, which implies an upside potential of 37.2% from the current share price.
