Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 11°C

ESTD 1874 Search

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

16:45 24 July 2014

Budget airline easyJet today reported a

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

Budget airline easyJet was to 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

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% 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” and

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% compared with the same period last year to £1.24 billion and revenue per seat grew by 1.7% to £62.47, or 2.7% at constant currency.

However, this was expected to slow to 1% 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.”

shares

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 East Anglian Daily Times 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 East Anglian Daily Times 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 East Anglian Daily Times 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

The Willis building in Ipswich.

Around 200 people are to lose their jobs at the Ipswich office of global insurance broker and risk management group Willis.

Gavin Patterson, chief executive of BT.

Photo: BT

BT is to pay out up to £129million to extend the Government-led roll-out of superfast broadband, after a bigger-than-expected take-up of the service.

Centrica has reignited controversy over high energy bills by announcing a 44% increase in first half profits at its British Gas retail division.

Energy giants Royal Dutch Shell and Centrica today revealed plans to axe a total of more than 12,000 jobs.

Christopher Hayman of Hayman Distillers with his children Miranda and James.

Essex gin maker Hayman Distillers is celebrating after winning a Gold award at this year’s International Wine and Spirits Competition (IWSC).

Bakery chain Greggs saw like-for-like sales rise 5.9% in the six months to July 4.

Higher breakfast sales and a bigger range of healthier products helped Greggs grow underlying profits by 51% in the first half of the year.

Barclays chairman 

John McFarlane.
Photo: VisMedia

Barclays boss John McFarlane today signalled plans to ramp up growth, squeeze costs and streamline the business after announcing a 25% rise in first half profits.

Uncertainty over Government policy is holding back potential investment in the offshore wind sector, according to East of England Energy Zone director James Gray.

The absence of a clear Government stategy is leaving the offshore wind industry “in limbo”, according to a leading figure within the sector in East Anglia.

The rate of growth in the UK economy rebounded during the second quarter of 2015, but the manufacturing sector continued to struggle, according to official figures.

UK growth bounced back in the second quarter of 2015 as gross domestic product (GDP) increased by 0.7%, according to official figures.

Ransomes Jacobsen operations director Simon Rainger addresses staff as the company's last Ransomes Commander mover leaves the production line.

Staff at Ipswich-based turf maintenance machinery maker Ransomes Jacobsen have marked the end of an era, with the last Ransomes Commander mower having rolled off the production line.

Barker Gotelee has welcomed Lucy Underwood, conveyancing assistant, Linda Crawford, solicitor, Nicky Sunderland. trust and estate planning practitioner, and Lisa Hobbs, junior secretary.

Ipswich-based law firm Barker Gotelee has welcomed four new employees across its expanding business.

Most read

Most commented

Topic pages