easyJet PLC gained altitude on Tuesday after low-cost peer Ryanair Holdings PLC reassured fares would not fall as much as expected this summer.
Ryanair boss Michael O’Leary said in an interview earlier on Tuesday that fares would likely fall closer to 5% this summer, against anticipations last month of a 10% drop.
He had previously warned of an “ugly scenario” for carriers, but told Reuters on Tuesday such a situation “looks like it has disappeared”.
“While fares were kind of softening during April, May and June, that has levelled out,” he added.
This came as the Ryanair boss launched his latest attack on Boeing Co (NYSE:BA, ETR:BCO) and delays in delivering aircraft.
Peel Hunt analysts said easyJet and British Airways-owner IAG would likely outperform Ryanair this year, despite its reassurances.
“We anticipate that the indication [...] fares would fall is likely to see the group report much a worse yield performance than its UK-listed peers,” Peel Hunt said on Ryanair.
easyJet climbed just under 7% to 479.10p on Tuesday, while British Airway's owner International Consolidated Airlines Group SA jumped 1.7% to 182.73p.
Ryanair's European-listed shares ticked up 4.3% in the meantime.