EasyJet Facing Turbulent Summer

easyJet shares have been rather turbulent in recent months, but investors will be hoping its Q3 results on Thursday shine more light on a booming airline sector.

easyJet reports its Q3 results on Thursday, which is expected to showcase buoyant summer demand and falling oil prices improving the group’s profit margins. However, worries of industrial actions and constant inflationary pressures may put a halt on a booming summer.

The airline previously reported passenger numbers up 35% in its H1 results, with load factor up 10ppts and strong bookings heading into summer 2023. The group previously anticipated it would exceed profit expectations of £260m for FY23, but recent restrictions among staff pay and strikes have caused many flight cancellations.

As a result, investors will be watching closely for any updates for the remainder of the year and whether demand can continue its momentum as household finances face further inflationary pressures.

According to TipRanks, the current analyst consensus is a Moderate Buy rating for easyJet with an average price target of 604p.

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