The Southwood Group looks at U.K based budget air carrier EasyJet Plc continuing from its impressive showings in 2012/2013 with strong performance in the opening days of this year as new figures indicate.
Hong Kong, January 23rd 2014, (PressReleasePoint)
Europe’s second largest budget airline after industry giant Ryanair Holdings Plc, EasyJet Plc has released figures that show the smaller airline continuing to gain rapidly in every arena over its larger rivals performance. Passenger numbers for the U.K discount airline rose by 2.13 million, up 3.6% to 61.3 million in 2013. By comparison, industry leader Ryanair saw a growth of 2.3%, up 1.8 million to 81.4 million travelers for the year.
The growth rate for passenger numbers was not the only area in which EasyJet outperformed its larger Irish rival. Seat occupancy rates for the year saw EasyJet achieve 89.3% of available seats filled per flight compared to Ryanair’s figures of 83%. Share values for both companies were also markedly different with Ryanair shares rising 32% for the year as EasyJet saw its own share value double over the same period, following on from gains of 79% in 2012.
“It’s easy to admire companies like EasyJet, they do not sit back on their laurels and congratulate themselves on their performance, they just go straight back into tightening up the way they do business and aggressively explore each and every opportunity for growth. Nothing in the way they have advanced has been as a result of luck, unless you count hard work and well laid out strategy as luck,” expressed Jonathan Douglas, Senior VP of The Southwood Group.
Already 2014 lay way to EasyJets continual strong gains in share value, rising 3.4% further in the first 8 days of the year and bringing the company’s valuation to $10 billion dollars. The continued gains in a period that most airline analysts forecast as seeing heavy growth of the coming 18 months bodes well for the carrier as it goes head to head with its rival Ryan air and smaller competitors such as Air Berlin Plc, Norwegian Air Shuttle AS and Wizz Air Ltd that round out the top five European budget airlines.
“Since our last buy recommendation for EasyJet, nothing has changed except an even stronger feeling of confidence in the airline’s future performance. We would expect that given the aviation industry as a whole at this point in time and solid indicators of strong growth in the budget carrier sector in particular that this upward trend will continue over the course of 2014 and most likely into 2015,” concluded the Senior Vice President at The Southwood Group.
As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.
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Finance, Hong Kong