EasyJet flies higher as BofA Merrill Lynch reiterates 'buy' rating

BofA said easyJet struck a bullish tone on the outlook for summer in its earnings call on Thursday. It pointed out that summer bookings have trended at 13% above 2019 levels for the past 10 weeks, with yields up 15% versus two years ago.

"This is the strongest yield increase highlighted by a European airline since the beginning of the pandemic, and above our expectations," Bank of America said.

It lifted its FY22 pre-tax profit estimate to £100m from breakeven, as it took into account higher loads over the summer quarter.

The bank also highlighted a strong balance sheet, which supports potential growth, and said easyJet was well positioned to benefit from a strong recovery in European leisure travel.

At 1440 BST, the shares were up 4.1% at 523.20p.