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

Casual Father

Of the things that make you feel old, finding a grey hair has to be close to the top of the list.

Yesterday, 17:20
The M11 will have a 50mph in both directions at Junction 8 for three months

A 50mph speed limit will be in place on the M11 in both directions at junction 8 near Stansted while work is carried out by Highways England repairing an embankment.

Yesterday, 06:00
Essex Police will be telling the community about their diverse calls today using a twitter take over

Staff at Essex Police are tweeting live today to give the public a sneak peek into life at the heart of the force.

Thu, 13:00
Duxford Fete. Picture: Saffron Photo

Hundreds of people enjoyed a day and night packed full of activities and live entertainment at the Duxford Village Show on Saturday (July 16).

Digital Edition

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

Most read stories

Newsletter Sign Up

Sign up to the following newsletters: