easyJet PLC (LSE:EZJ) along with its airline peers, has been flying high recently but headwinds are beginning to build in the shape of higher oil prices and weaker traffic forecasts.
Given that, some reassurance that everything is on track will be required with its first-quarter results next week.
Oil has climbed back above US$80 a barrel recently and AJ Bell analyst Russ Mould noted airlines had enjoyed easing cost pressures in 2024 as oil prices receded.
“However, with oil creeping higher in the first knockings of 2025, fuel costs could still return as a meaningful headwind for the industry,” he said.
UBS expects the update to be ‘positively received’ even so.
"We forecast revenues of £2,033m (1Q24: £1,800m) with holidays at £240m (1Q24: £181m), other ancillary revenues at £520m (1Q24: £486m) and passenger revenues at £1,273m (1Q24: £1,133m) driven by around 7% traffic growth."
Losses in the traditionally weak quarter are forecast to halve to £60 million (1Q24 minus £126m) with the summer outlook and how pricing is performing key things to watch, says the Swiss bank.