easyJet: sees 2018 profit at upper end of guidance
(CercleFinance.com) - Strong customer demand has offset the impact of disruptions at the industry level for easyJet, which said its annual profit is expected to be in the upper half of previous guidance.
Despite the impact of strikes, air traffic control restrictions and severe weather across Europe, the low cost airline expects to deliver full-year headline pre-tax profit of between 570 million pounds and 580 million pounds for the year ending 30 September.
easyJet previously expected headline pre-tax profit for the financial year to be in the range of 530 million pounds to 580 million pounds.
For the financial year, passenger numbers excluding Tegel are expected to increase by 5.4% to about 84.6 million, driven by a 4.2% increase in capacity. The load factor is expected to increase by 1 percentage point over the full year to 93.6%.
For the new fiscal year ending 30 September 2019, easyJet said it expects capacity to grow by about 10% to around 105 million seats, with first-half revenue per seat at constant currency set to fall by low- to mid-single digits.
This comes as an unpleasant surprise, although easyJet explains it by a series of factors, ranging from the bankruptcies of Monarch and Air Berlin to the impact from Ryanair's winter flight cancellations, in addition to the Easter weekend shifting into the second half of the year.
As a result, easyJet shares were down 0.2% at 1,323.5 pence in London this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Despite the impact of strikes, air traffic control restrictions and severe weather across Europe, the low cost airline expects to deliver full-year headline pre-tax profit of between 570 million pounds and 580 million pounds for the year ending 30 September.
easyJet previously expected headline pre-tax profit for the financial year to be in the range of 530 million pounds to 580 million pounds.
For the financial year, passenger numbers excluding Tegel are expected to increase by 5.4% to about 84.6 million, driven by a 4.2% increase in capacity. The load factor is expected to increase by 1 percentage point over the full year to 93.6%.
For the new fiscal year ending 30 September 2019, easyJet said it expects capacity to grow by about 10% to around 105 million seats, with first-half revenue per seat at constant currency set to fall by low- to mid-single digits.
This comes as an unpleasant surprise, although easyJet explains it by a series of factors, ranging from the bankruptcies of Monarch and Air Berlin to the impact from Ryanair's winter flight cancellations, in addition to the Easter weekend shifting into the second half of the year.
As a result, easyJet shares were down 0.2% at 1,323.5 pence in London this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.