Since the turn of the year, EasyJet share price (LON: EZJ) has risen by over a third and currently trades at its highest level in the past six months. The company’s recent resurgence has raised investors’ optimism, with speculations of a complete recovery to its pre-2022 price levels.
Why is the EasyJet Share Price Surging?
EasyJet share price has risen by 38 percent in the first three weeks of the year. The increase has been driven by optimism from investors who expect 2023 to be better, especially for the aviation industry. The current price gain is also a result of the airline industry’s expectations that 2023 will be better than last year, as more passengers are expected to the skies.
This is reflected in the comapny’/s load factor, which reached 85.5 percent of capacity in the year to the end of September 2022, an improvement of 72.5 percent. EasyJet also expects the load factor in the first quarter of 2023, which also includes the Christmas period, to improve by around 10 percent year-over-year.
Investors are also looking at the steps EasyJet has taken in improving its bottom line, which includes improvement on its runway capacity that hindered its growth in 2022. The company has also been at the forefront of addressing the staff shortages that negatively impacted its performance in 2022.
EasyJet is also expected to benefit from many tailwinds, including falling inflation, stable jet fuel prices, and strong demand for post-lockdown travel. All these factors will likely see EasyJet’s share price continuing with the current aggressive bullish trend.
EasyJet Price Forecast
As seen from the above fundamental analysis, I expect to see EasyJet continuing to rise for the next few trading sessions and possibly for the long term. On the technical side of things, the chart below shows recent price action being aggressively bullish.
The chart also shows that trend-following indicators, such as the Williams Alligator, continue to give signals of a continuation of the strong bullish trend. Therefore, my EasyJet share price expectation is for the company to trade above the 500p price level in the coming few trading sessions. For the long-term, my price target is for the company to trade above the 545 supply level shown in the daily chart below.
Daily Chart
