easyJet has announced that the number of passengers on its flights topped 60million per year for the first time in its history.
An increase in traffic of 5.6% over the past year hints that upcoming financial results for easyJet could be very positive. That increase in traffic helped to take the airline over the magic 60m milestone, while load factor rose marginally by 0.1% to 88.1%, an indicator of the carrier's success in boosting its passenger numbers.
According to Joshua Raymond of Cityindex, the market reaction to the good news from easyJet has been to take the short-term gains. He said: “Another important milestone has been passed today when easyJet announced its passenger numbers grew by 5.6% annually to break above the 60m mark for the first time, continuing its consistent growth rates of the past decade in adding 10m passengers to its carriers every few years.
“Whilst the news marks a milestone for the airline and shows continued demand for budget airlines as the carrier of choice to Europe at a time when consumers are suffering from anaemic wage growth, shares fell to the bottom of the FTSE 100 performers table losing 3.4%.
“The falls however are not in reaction to the news but more so about investors taking profits off the table after a strong run in share prices, which have outperformed the FTSE in the last two weeks. Shares had rallied more than 15% after the airline announced a smaller loss for the first half of the year on May 15. Shares recently hit a new record high above the £13 mark, and so today’s 3% falls is nothing to get overly concerned about.”