Investors will be scouring easyJet’s full-year results this week for signs of improvement, with the budget airline having last month slashed its profit guidance and warned that currency headwinds will hit its balance sheet.

Analysts are expecting pre-tax profit to come in at around £495m for the year to September 30 when easyJet reports tomorrow, following a difficult 12 months which saw the company grapple with the fallout of terror attacks, air traffic control strikes, political turmoil, and the post-Brexit slump in the pound.

Graham Spooner, an investment research analyst at The Share Centre, said: “easyJet’s shares have been suffering from turbulence for most of this year so the market will be hoping for some good news in these results.

“There was precious little of that the last time we heard from the company in October.”

Luton-based easyJet slashed its pre-tax profit guidance to between £490m and £495m last month, down from the £721m which it had previously predicted, when it posted its half-year results in May.

The downward revision from easyJet came after the company revealed that it would be left nursing at least £125m in lost profit due a combination of terror attacks across Europe, Egypt and Tunisia, air traffic control strikes in France and political turmoil in Turkey.

It added that currency headwinds linked to the post-Brexit vote fall in the value of sterling would cost its a further £90m.

The airline said it recorded an 8.7% drop in per-seat revenue in the three months to September 30, as it slashed fares amid a price war with budget airlines including Dublin-based Ryanair, the largest operator at Stansted Airport.

With bases at 11 UK airports, easyJet operates a network of more than 830 routes across Europe, the Middle East and North Africa.

Mr Spooner said: “The market will be especially interested to hear if there is any change in the expectations for a further drop in revenue per seat in the first quarter of the new financial year.

“Rival Ryanair produced some good figures recently but easyJet’s latest monthly passenger stats were slightly disappointing.”

The recent statement by Ryanair included a warning that its fares are likely to drop 15% this winter and could put easyJet under further pressure to cut costs.

Ryanair chief executive Michael O’Leary said fares would fall amid uncertainty over Brexit negotiations, which he said was “good news for customers, not so good news for shareholders”.

Meanwhile, the boss of British Airways owner International Airlines Group (IAG) has said that its ticket prices may have to rise to offset the weakness of the pound and the effects of industrial action.

However, Citi equity analyst Andrew Light expects easyJet to “grow capacity aggressively” by around 8% over the next financial year “no matter what”.

“We believe easyJet is prepared to risk FY17 earnings in order to build market share in its key airports, especially given the financial weakness of some competitors,” he said.

This could lead to a “strong recovery” in 2018, as competitors scaled back while easyJet made its planned transition to larger A320s which will drive fuel efficiency and reduce unit costs, added Mr Light.