After hitting a 10-year price low last week, EasyJet’s share price looks to be recovering in the markets, with today’s trading session already up by a percentage point. The price gain comes amidst reports released by the airlines indicating they were expecting the current holiday bookings to continue despite the current political instability and the rising cost of living.
In a statement, Johan Lundgren, the CEO of EasyJet, indicated that the company expected consumers to continue protecting their holidays despite the rising costs. He added that they expected people to gravitate towards their budget airlines during the holiday season, which would mean a continued performance in the markets.
Lundgren also indicated that they expected to perform well in these difficult times due to their low-cost flights, expressing confidence that they would continue delivering in the coming months and years.
There are also other factors that point to EasyJet’s share price recovering in the next coming trading sessions, including having a 69 per cent hedge of Fuel for its financial year 2023. Therefore, the rising cost of energy is likely not to impact the company. The company also boasts of a robust balance sheet with around £3.6bn of cash and money market deposits and a net debt of £0.7bn based on financial reports released on September 30.
EasyJet Share Price Analysis
EasyJet’s share price is up by a percentage point in today’s trading session. The company has been in a positive run of form for the past few trading sessions, which has seen its price surge by 18 per cent within the past week.
Looking at the chart below, we will likely see a continued price gain in the market, and I expect EasyJet’s price to hit the 338p supply zone and break to the upside. There is a high likelihood that EasyJet will be trading above the 350p price level in the next few sessions. A drop below the 300p price level will invalidate my bullish analysis.
EasyJet Daily Chart
