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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Leisure, gaming and gambling

easyJet flies more passengers in January but there are signs growth is starting to slow

The budget carrier flew 9.5% more people in the 12 months to January 2018, but that’s now three months in a row where annualised passenger growth has slowed

Budget carrier easyJet PLC (LON:EZJ) flew almost half-a-million more passengers in January than it did a year earlier, but there are signs that growth is starting to slow.

The orange and white liveried airline carried 5.16mln people last month, up 8.7% compared to the same month in 2017 (Jan 2017: 4.75mln).

READ: easyJet upgraded by Numis after first quarter revenue beats expectations

Load factor – a key industry metric which shows how full a plane is – rose 2.2 percentage points to 88.4% (Jan 2017: 86.2%).

Passenger numbers in the industry have been on an upward trajectory for a little while now on the back of lower prices, sparked by intense competition within the sector. That has hampered margins and weighed on profits.

Slowing growth

A rising top line, buoyed by higher passenger numbers, has offset some of that though, but there are signs that even that is starting to slow now.

On an annualised basis – January 2017 to January 2018 – the number of travellers grew 9.5% and, while that seems healthy, it is third month in a row that growth has slowed (Dec: 9.6%, Nov: 10.7%). It is also the weakest rate of growth since last summer.

easyJet shares dipped 2% to £16.09 early on Tuesday.

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