EasyJet profits to land at better end of guidance

EasyJet PLC (LON:EZJ) said full-year profits should land at the better end of the budget airlines previous guidance after it enjoyed increased demand due to disruption at rivals Ryanair and British Airways.

With costs rising 12% on last year, annual profit before tax is expected to touch down between £420mln and £430mln, down 25%-27% from the £578mln PBT in 2018 but in the upper half of management's targets.

Passenger numbers for the year to end-September were up 8.6% to 96mln as capacity was raised 10.3% to 105mln seats, meaning planes were not as full as they were the year before.The cost increase was due to higher unit fuel prices and adverse foreign exchange movements, but was partly offset by a 0.8% fall in other costs from “self-help initiatives”.

Looking to the first quarter of next year, the FTSE 250 company said forward bookings were in line with the same time last year.

Chief executive Johan Lundgren said various initiatives in the fourth quarter to optimise yield led to the “solid” revenue performance, with second half revenue per seat expected to incRead More – Source

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