EasyJet traffic up but global jitters hit shares
Low-cost airline easyJet followed arch-rival Ryanair by reporting a 20 percent rise in September passenger volumes, but shares fell across the sector amid growing concerns about the economy.
easyJet expects high load factor for GB AirwaysThe company also said in a statement on Monday its load factor - a measure of how well it fills planes - improved versus a year earlier to 86.9 percent, while year-to-date passenger growth was up 17.3 percent.
The performance echoed an equally positive result from Ryanair, which said on Friday its September passenger numbers grew 20 percent.
However, both airlines have warned of slowing consumer demand over the winter months.
Shares in British Airways were hit hardest after its traffic numbers showed on Friday that more expensive flying is suffering most, with premium class travel down 8.6 percent in September and passenger numbers down 4.8 percent overall.
"The outlook is uncertain - consumer weakness is going to be a factor for some time," said Douglas McNeill, transport analyst at Blue Oar.
EasyJet shares were down 3.3 percent at 315 pence by 9:30 a.m. British time, valuing it at 1.3 billion pounds. The shares are down by around 46 percent for the year so far as airlines battle the twin threat of rising fuel costs and impending recession.
British Airways was off 8.5 percent at 150 pence, valuing the flagship carrier at 1.7 billion pounds, while Ryanair was down about 6 percent.
Collins Stewart analyst Andrew Fitchie said in a note that BA and the budget airlines were operating opposite models - with the former pushing up prices at the expense of volume and the latter keeping fares low - helping to explain the sharp contrast in September performance.
(Reporting by John Bowker; Editing by David Holmes and Jon Loades-Carter)
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