easyJet delivered good performance in July 2016, with increased passenger traffic and improved load factor. This was despite the concerns of rising international terrorism, cancellations and the French ATC strikes. easyJet’s performance in Q3 FY2016 was not promising following a significant number of disruptions ranging from the terrorist attack in the Brussels, the crash of EgyptAir, a series of ATC strikes (mainly French), severe weather conditions as also to runway closures and congestion at London’s Gatwick Airport. Despite this, easyJet bounced back in July 2016 reported strong results. The Group’s business model remains robust, with a strong cash position, solid balance sheet and a flexible fleet plan. The share price has fallen from 1,700p in January 2016 due to fears of competition, but mainly the concerns for EU travel following the BREXIT. The share is at a PE discount to its 4 year average in excess of 25%, and we believe the current price offers a potential short-term uplift. We believe easyJet would navigate through the tough times and continue to perform well. BUY – 10/08/16

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