EasyJet raises full year profit forecast

EasyJet raises full year profit forecast

A strong summer performance has enabled easyJet to raise its full year profit forecast to a record of as much as £320 million.

In a trading update this morning, the budget carrier said pre-tax earnings for the year to the end of September were now expected at £310 million-£320 million against £280 million-£300 million previously forecast.

The budget carrier said it had faced “very low” levels of disruption despite the London Olympics and the threat of industrial action across Europe.

But easyJet warned that unit airport costs are expected to increase by around £80 million for the financial year 2013 due to “significantly above inflation rises” in charges at regulated airports in Spain and Italy.

Despite these headwinds, easyJet’s focus on the customer, robust operational performance, the strength of the easyJet network combined with tight control of costs and capital discipline means that easyJet is well placed to continue to succeed, the statement said.

Chief executive Carolyn McCall said: “EasyJet has had a strong summer performance, which has enabled us to deliver another good year of returns and growth for our shareholders.

“Strong post-Olympics trading and a benign operating environment along with the continued strict allocation of capital and aircraft across our leading network, improvements in revenue management and marketing, and a tight control of costs has meant that easyJet will deliver higher returns and its highest ever pre-tax profit for the financial year ending 30 September 2012, despite absorbing an additional £230 million in fuel costs this year.

“We also continue to deliver for our customers with the best on-time performance in Europe this summer, low fares to convenient airports across Europe and our recently announced launch of allocated seating across the easyJet network.”


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