3Q trading update (Year-end Sept 15)

Positives

• EasyJet increased their profit before tax figure for FY15 to £660mln from £581mln

• The company is having a good summer period

• Weak oil price

• 77% of H215 seats already booked

• Management announced that ‘for the full year, easyJet will grow revenue, profits and dividends.’

• Passenger numbers rose for the quarter by 6.2% to 19.1mln

• Load factor increased by 1.3% to 91.7%

Negatives

• Per passenger revenue fell 2.8% (though this was better than the guidance given by management in May)

Our valuation

Our pre-tax income for FY15 is forecasted at £663mln in line with managements’ forecasts. We have a price target of £18.00 on the stock which is currently trading at £17.36 which is a 4% upside.

We will be updating our model in the coming days to reflect these new changes.

Kristian Camenzuli