EasyJet on course for £400m profit

Full-year pre-tax profits of £400m–£440m were forecast by easyJet last week after it posted third-quarter revenue up 11.4% to £1.76bn and passenger numbers up 8% to 26.4m. The airline said the results were “in line with market expectations”.

The revenue increase was attributed to “successful revenue initiatives, a solid Easter performance and a focus on late-yield initiatives”, while passengers were said to have experienced “significantly reduced cancellations and long delays”.

CEO Johan Lundgren said: “EasyJet’s third-quarter performance was robust and despite the tougher macroeconomic conditions was in line with expectations.

“We remain focused on delivering our revenue initiatives and driving costs down to enhance profitability per seat. With second-half forward bookings at 78%, we have better visibility on the second half and expect to deliver a profit before tax of £400m–£440m.”

Last week’s news came as Ryanair former executive Peter Bellew, who days earlier resigned from the Irish carrier, was confirmed as easyJet chief commercial officer (BTN 15 July).

EasyJet has also announced plans to relaunch its holiday arm next year and add routes from Manchester this year to Verona (Italy) from 28 October, Hurghada (Egypt) from 30 October and Rovaniemi (Finland) from 21 November, with five new aircraft based at the airport.

www.easyjet.com

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