EasyJet should surely be celebrating given the recent woes of key rivals. However, despite reporting surging passenger numbers over the summer, easyJet shares had a bumpy ride today following its trading update.
Shares in easyJet ended 2% lower, having been down by more than 3% during the trading session. This was despite the budget airline forecasting profits for the year ended September to be at the top end of forecasts after passenger numbers in the busy summer season reached record levels.
So, what are investors worried about?
One thing is causing investors a lot of concern: revenue per available seat.
EasyJet´s revenue per seat fell by 3.7% in the final quarter of its 2017 financial year, and is also 1.4% lower over the past six months.
It underlines the struggle that European airlines are facing in what is a crowded market.
Alitalia, Air Berlin and Monarch Airlines have all gone bankrupt and there are worries that yet more European airlines could soon find themselves in need of a financial parachute.
Budget airlines have been in the news for all the wrong reasons over recent weeks.
Of late, easyJet shares have been propelled higher by the woes of its arch rival Ryanair, which was forced to cancel thousands of flights due to a lack of pilots.
Ryanair had been attempting to confront the overcapacity in the market by running its business with very little slack.
The strategy seriously backfired as regulatory changes compelled airlines to recalculate the way they work out the number of flying hours for cockpit crew. Regulators don´t want airlines to overwork pilots for safety reasons.
Then there´s this week´s collapse of Monarch Airlines, which gave easyJet shares another boost.
Once today´s fall is factored in, easyJet´s shares are still around 12% higher over the past month.
Over the three months to the end of September, easyJet carried 24.1m passengers as capacity reached a high of 95.6%.
Record passenger levels over the summer means easyJet believes its annual profits will be in the region of £405m to £410m.
This is despite earnings having been hit by sterling weakness in the wake of last year´s Brexit vote.
However, the profits guidance falls well short of the £495m that easyJet achieved in 2016, while it´s even further behind the £686m it notched up in 2015.
Airlines have been competing fiercely on price, with easyJet acknowledging sharp falls in ticket prices to beach destinations.