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EasyJet sees annual profit rise

Thursday, July 24 08:06:45

Low-cost airline easyJet said it would grow annual profit by at least 14 percent assuming no further significant disruption over the next two months, putting it on track to meet analyst expectations.

The company forecast that pretax profits for the 12 months to the end of September would be in the range of 545 million pounds ($928 million) to 570 million pounds and the range included the impact from situations in Israel, Egypt and Moscow.

Analyst forecasts expect easyJet to report pretax profit of 569 million pounds for the current financial year according to Thomson Reuters data.

The airline's low fare model has helped it and low-cost rival Ryanair weather the impact of an increasingly competitive European shorthaul market, while higher cost carriers have struggled.

Air France-KLM, Europe's second-largest traditional network carrier warned earlier this month that its 2014 profit could be as much as 12 percent lower than previously predicted, mainly due to overcapacity and resulting weak prices.

Lufthansa last month cut back its profit targets for the next two years, citing competition with low-cost rivals as one of the factors.

Calling its third quarter performance solid, easyJet said it grew revenue by 8.6 percent to 1.2 billion pounds in the period, having added capacity of 6.8 percent.

Shares in easyJet, which have fallen 17 percent over the last three months, closed at 1,403 pence on Wednesday. ($1 = 0.5874 British Pounds)

(Reuters)

For more visit www.businessworld.ie