EasyJet keeps full-year profit outlook at high end

Source: Flightglobal.com
This story is sourced from Flightglobal.com

UK budget carrier EasyJet has revised its full-year pre-tax profit expectations to £470-480 million ($760-780 million), the higher end of the range it forecast in July.

The airline is maintaining its outlook of a 6% rise in revenue per seat and a 4% increase in cost per seat, excluding fuel, for the year to 30 September.

Chief executive Carolyn McCall attributes the “strong” performance to management efforts to keep “tight control” on costs and “generate value” for customers.

She adds that the capacity hike of 3.3% over the year has been “unusually benign”.

EasyJet states that second-half revenues per seat will rise by 6% despite the disadvantages of an early Easter holiday period and the effects of political unrest in Egypt.

Airport charges have increased costs but second-half unit fuel costs are “favourable” by £13 million, says the airline.

EasyJet expects its first-half fuel bill for 2014 will rise by £20-30 million, under its current hedging levels, while exchange rates will have a £10 million negative impact.