Posted on: 26 March 2015 by Ross McSweeny
easyJet has released a trading update for the first half of its financial year (which runs from 1 October-30 September), including revised figures from the trading statement it issued on 27 January 2015 which now foresee a better first half result before tax.
The airline now expects first half capacity growth to be around +3.7% rather than the previous +3.5%, although it still predicts full year capacity growth of +5.0%, as forecast in January. The first half revenue per seat – at constant currency – is now expected to be +2.5% rather than around +2.0%.
Overall, the first half result before tax, predicted in January to be a loss of £10 million to £30 million, is now expected to be in the range of a loss of £5 million to a profit of £10 million. easyJet expects the first half performance to be ahead of the guidance given in the 27 January 2015 trading statement primarily due to the movement of exchange rates in the second quarter.
Based on a Euro:Sterling exchange rate of 1.3574 and a US Dollar:Sterling exchange rate of 1.4917, it is now expected that exchange rate movements are likely to have around a £20 million favourable impact in the six months to 31 March 2015, primarily due to the recent weakening of the Euro against Sterling;
Commenting on the pre-close statement, easyJet’s chief executive Carolyn McCall remarked, “easyJet has performed well in the first half of the year and has continued to deliver its strategy of making travel easy and affordable for passengers. We continue to expect that lower fuel costs will be beneficial for our customers as fares adjust. easyJet continues to be well positioned to deliver sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet.”
easyJet will provide further details on its performance in the six months to 31 March 2015 when it publishes its half year results on 12 May 2015.