By Greg Wright

Published 9th Oct 2023, 08:41 BST

Investors, who have been impressed by the company’s meteoric share price rise over the last year, will also be keen to know what targets it will aim for next year, analysts said. The share price increase might suggest easyJet has enjoyed smooth sailing over the last 12 months. But the 52 per cent increase in its price hides a series of disruptions, including problems over the summer with National Air Traffic Services (Nats).

Dozens of flights were hit by Nats failures in August and September, prompting easyJet boss Johan Lundgren to say Nats had “let down customers”.

“While trends are encouraging, investors can’t rule out disruption from air traffic control constraints due to strike action,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.

If its forecasts are right, easyJet should report a hike in profit as it updates shareholders on its performance during the financial year on Thursday. (Photo by Nicholas.T.Ansell/PA Wire)

“The extent of the damage to the bottom line here will be important to understand but shouldn’t be seen as a long-term indicator of the group’s health. More important will be how booking momentum’s looking as we head into the new financial year. With cost-of-living pressures still very much alive and kicking, analysts will wonder how much longer the travel sector’s resilience has left to run.”

Many of those pressures have been caused by energy prices, and a slow but steady increase in oil prices in recent months have also placed easyJet’s share under pressure.

“That loss of altitude may be due to the resurgence in oil prices, since fuel is a key input cost and higher energy prices could also crimp consumer spending, and comes despite an upbeat third-quarter trading update from chief executive Johan Lundgren back in June,” said AJ Bell investment director Russ Mould.

He added: “Of just as much interest will be any profit forecast for the 12 months to September 2024, should Mr Lundgren feel able to give one, although he may prefer to wait until the actual full-year results in late November for that.

“The current analysts’ consensus forecast is looking for a further increase in pre-tax profit to £552m.

“That would still be below 2015’s all-time high of £686m, which may be why the shares are still well below the peak seen back then.”

Last month, easyJet launched a campaign aimed at tackling outdated stereotyping of jobs in the airline industry.

The move was part of a recruitment drive to hire 1,000 new cabin crew this year.

The budget airline is encouraging people to switch careers, with the advertising campaign featuring a former dental nurse, an optician and a Paris police officer.

The initiative follows the company’s drive last year to encourage people over the age of 45 to consider a career as cabin crew. Since then, the number of over-45s flying with easyJet as crew has increased by 28 per cent.

As part of the new recruitment campaign, easyJet polled 2,000 British adults about the job of cabin crew, which revealed there are still widely held misconceptions about the role. The research found that 75 per cent of those polled believe that cabin crew is typically a role for women. As a result, two in five men said they would not consider doing the job.

EasyJet expected to report profit rise during period of disruption