According to December 2023 data, the aeroplane and air travel firm easyJet (EZJ) is sitting 15% higher on the market as of Tuesday, 26 December. Its rival, International Consolidated Airlines Group (IAG) is 3% down in comparison as 2024 looms into view.
easyJet share price up 15% this month
Investor sentiment favours the low-cost short-haul airline over IAG, which specialises in longer-haul flights, and experts note that a strong jobs market in Europe is contributing to an increased demand for short-haul air travel. Longer flight times have yet to pick up since the end of the COVID-19 pandemic despite a strong macroeconomic outlook.
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The Russia-Ukraine war has also caused uncertainty when flying to the Middle East, and, more recently, north African flights have decreased due to conflicts in Palestine. Alongside this, oil prices have risen substantially, but easyJet’s strong balance sheet has helped it to cope.
Industry experts have expressed interest in the airline’s stock recovery since the pandemic, despite its last consecutive earnings per share (EPS) years of growth being 2013-2015. easyJet’s EPS is projected to rise to 77p in 2027 from an estimated 56p next year although this rise is determined by the jobs market and a decrease in global conflicts.
Another reason why the short-haul airline has recovered better than IAG is its bargaining power – the airline often offers its customers huge deals, all-inclusive, which have helped to bolster it since 2020. IAG has attempted to recover with its acquisition of Air Europa, although this has not shown any benefits so far this year.
