EasyJet Shares Tumble Despite Higher Passenger Numbers

EasyJet shares were knocked by more than 4% in early London trading despite the budget airline reporting solid financial results in the third quarter.

The European carrier said it was on target to achieve a full-year profit before tax of between £545m (€688m, $927m) and £570m. EasyJet said it flew 17.9m passengers in the three months to the end of June, a 9.4% increase across the year. And its total revenue had lifted 8.6% to £1.24bn.

It said its forecasted profit range took into account the recent volatility around Israel, Egypt and Moscow.

"We will continue to invest in building leading network positions and this combined with a compelling customer proposition, low cost base and strong balance sheet leaves easyJet well positioned to continue to deliver sustainable growth and returns," said chief executive Carolyn McCall.

Marc Kimsey, senior trader at Accendo Markets, said traders "are snapping up shares at this morning's discounted price".

"Importantly traffic numbers have increased every month throughout 2014 with the busiest months of the year still to come," he said.

"EasyJet remains the preferred carrier in its space and a firm favourite among the institutional investors."