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EasyJet full-year profit to meet upper end of forecast

EasyJet is forecasting a full-year pre-tax profit of £570-580 million ($745-758 million), following a strong fourth quarter, up on the previous year's figure of £408 million.

The UK budget carrier says its full-year outlook is in the “upper half” of previous guidance on its financial performance.

EasyJet expects passenger numbers for the year – excluding its Berlin Tegel operation – to rise by 5.4% to around 84.6 million, supported by a capacity hike of 4.2%.

This capacity increase is lower than originally planned, it says, owing to external disruption. But it means the airline’s average load factor for the year will rise by one point to 93.6%.

EasyJet says its total revenues, including the Tegel operation, will be around £5.89 billion. Costs excluding fuel will total £4.13 billion.

Revenues per seat, outside of Tegel, will rise by 6.5% at constant currency while cost per seat will increase by 3.8%.

The airline says the higher-than-expected cost figure is the result of “sustained” high levels of disruption, pointing out the impact of third-party industrial action, air traffic control restrictions, and poor European weather.

EasyJet is also taking a £65 million charge related to information technology investments that it no longer requires, owing to a “change in approach” to its IT systems.

It says it is to pursue “better utilisation” and development of current systems, on a modular basis, rather than work towards a full replacement of its core commercial platform.

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