Shares in easyJet gained a boost on the London Stock Exchange as Barclays backed the airline’s strategy.
Barclays’ European transport analyst Oliver Sleath praised the budget carrier two days after it revealed a cut in losses in the off-peak winter season thanks to lower oil prices and flying more on popular routes.
“Be it business passenger, digital initiatives, allocated seating or simply careful capacity allocation, the company has developed a model that continues to exceed expectations,” he wrote.
“Capacity concerns” proved unfounded, Sleath added, and prices rose in spite of fierce competition among airlines.
Demand in the UK should remain strong and expand more quickly than the wider economy, he said, noting that easyJet has the “highest exposure to the UK consumer” out of all the airlines he covers, The Times reported.
EasyJet shares were 109p higher at £18.76 and dearer than ever after Sleath lifted his target price for them from £18.50 to £21.50 and urged clients to get “overweight” in them.
He still deemed their valuation “attractive” and relatively cheap when set against those of its rivals.