easyJet PLC saw its shares rise Thursday after issuing a full-year 2022 trading update against a weaker market backdrop with analysts hopeful for a better year in 2023.
Analysts at Peel Hunt said the numbers disclosed were in line their forecasts and the consensus range, but noted that the outlook for full-year 2023 is encouraging with booked load factors ahead of the same point in 2019 and yields remaining robust, albeit on slower capacity recovery than they anticipated.
The airline's full-year 2022 loss before tax is expected to be between £170mln and £190mln compared to the consensus loss of £183mln and Peel Hunt’s £179mln forecast, the analysts noted.
These losses are after a £64mln non-cash forex loss and £75mln of incremental disruption costs compared to 2019 but have been helped by a profit from the Holidays division of more than £35mln, they pointed out.
In the fourth quarter easyJet carried 24.271mln passengers at a load factor of 92%, slightly below the Peel Hunt forecast, as was revenue of £2,515mln for the quarter and £5,770mln for the year but better cost control meant losses were in line.
The broker's analysts said full-year 2023 hedging has increased for both fuel and the US dollar with easyJet around 56% and 62% hedged respectively at significantly better than market rates.
However, they cautioned that the unhedged parts are likely to put pressure on consensus forecasts given current spot prices and despite a higher level of forward bookings than in 2019 as well as continuing robust yields.
Peel Hunt reiterated a 'buy' rating and shares in easyJet were 2.77% higher at 293p in afternoon trading.