Stansted: Annual profits at easyJet to fall just short of City expectations

17:10 25 July 2014

Budget airline easyJet today reported a

Budget airline easyJet today reported a 'solid' third quarter.

Archant

Budget airline easyJet was left counting the cost of unrest and political tensions affecting Israel, Egypt and Russia after its latest trading update prompted the City to scale back forecasts for annual profits.

Shares in the company dipped as chief executive Carolyn McCall said the airline expected pre-tax profits for the year to the end of September to be in the range of £545million to £570m.

This represents an increase of at least 14 per cent on last year, but City analysts had previously pencilled in a figure of £572m.

Ms McCall said the expected range included the impact from the current situations in “Israel, Egypt and Moscow” but assumed “no further significant disruption”.

She said the quarterly performance was “solid” and that the airline was “well positioned to continue to deliver sustainable growth and returns”.

The company, which is based at Luton and is also a major operator at Stansted, said revenue per seat growth at Gatwick had been hit by its increased capacity at the airport after it picked up flying slots from rival Flybe. But it said there was a significant opportunity over the next two years to drive improvement in revenue performance.

Total revenues for the third quarter grew 8.6 per cent compared with the same period last year to £1.24 billion and revenue per seat grew by 1.7 per cent to £62.47, or 2.7 per cent at constant currency.

However, this was expected to slow to 1 per cent at constant currency for the second half as a whole as capacity grows, it added.

Richard Hunter, head of equities at stockbrokers Hargreaves Lansdown, said that while the profits guidance had undershot expectations, the figures showed a “very strong quarter” for easyJet.

Cantor Fitzgerald analyst Robin Byde said: “The ‘miss’ on full year guidance is clearly fairly minor and there are mitigating factors from the various political situations, and there is always the possibility that easyJet is being overly cautious.

“However we think that this outlook statement adds to investor unease that consensus forecasts have generally run ahead.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Saffron Walden Reporter visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Saffron Walden Reporter staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Saffron Walden Reporter account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More news stories

Yesterday, 09:33
Police want to trace this man after a theft from Stansted Tesco Express

Officers have released pictures of two men they want to trace in connection with a theft from a Stansted shop.

Yesterday, 14:29

A 19-year-old from Takeley has been spared jail despite being caught with indecent child and animal images on his computer.

Yesterday, 11:26

A caravan has been gutted after a fire earlier this morning (Monday).

Sunday, August 30, 2015
Support for Sight's Madeleine Cassidy, Paul Atkins and dog Seymour receive a cheque for £600 from U3A chairman Sue Barton and choir members Penny and Ian Lawson.

An Uttlesford charity has been given a double boost.

Digital Edition

Image
Read the Saffron Walden Reporter e-edition today E-edition

Most read stories